12.16 XAU Evening
During the day, XAU fell from around 4317 to 4271 and then stabilized, subsequently entering a consolidation phase.
From the hourly Bollinger Bands perspective, although the middle band and upper band continue to diverge downwards, the lower band, which serves as a key short-term support, has started to flatten out. During the current period, as the price consolidates around the lower band, there is a trend of the lower band moving sideways, indicating that the short-term downward momentum has significantly weakened.
The flattening of the lower band signals a convergence of market volatility and a rebalancing of bullish and bearish forces. Together with the performance of not making new lows after touching the lower band, it confirms the effectiveness of the support near the lower band, which is a typical characteristic of stabilization following a short-term overselling. This pattern of "lower band stabilization + price driving the band sideways" essentially indicates that bullish funds are beginning to accumulate at lower levels, gradually reversing the previous unilateral downward trend, and building momentum for subsequent rebounds.
In the short term, the consolidation phase serves both to digest previous declines and as a process for accumulating bullish strength.
(4267 entry, 4256 add, 4243 stop, watch 4309-4330)
Personal opinion, not an investment recommendation
