#BinanceABCs 12.16 Gold Market Technical Analysis: High-Level Resistance Weakening, Rebound Selling Dominates

The gold price surged to the 4318 level in the early session but then started to decline, encountering resistance. The daily chart shows consecutive long upper shadows, indicating that the pressure around 4320 remains quite evident. When the bulls push higher, the momentum is gradually weakening, which is a crucial signal.

How to interpret the technicals? The 4-hour moving averages have already started to turn downward, and the candlesticks are consistently below the moving averages, showing overall weakness. The key support zone to watch is 4265-4270. On the hourly chart, after hitting a bottom, the price has been consolidating in a narrow range at low levels, with room for correction. There might be a small rebound in the short term. But honestly, the overall trend remains weak, so be cautious of further declines during the European session.

The trading strategy centers on one core idea: sell on rebounds, and buy on dips during corrections as a backup.

How to operate specifically?

If the price first touches the 4258-4260 double bottom area, consider a small long position. But be aware, if the price continues to weaken, you'll need to wait for support levels to be confirmed before entering.

Above, 4300 is the intraday resistance, and further up, the 4320-4330 zone is a short-term obstacle.

On the support side, focus on the 4260-4250 area, as the strength of the defense here is very critical.