As we did before insert the mask on the layer by choosing Add layer mask on the bottom part of the Layers panel and choose the Soft Mechanical brush of black color (set Opacity to 15% in Options bar). Paint in the mask to hide the highlight’s edges.

Now we have to create the bauble’s support. In this case we’ll use the Rectangle Tool (U) to represent a rectangle and then choose the Add Anchor Point Tool to add 2 anchor points on the top and the bottom part of the rectangle. The shape may be corrected with the Convert Point Tool.

Click on Add a layer style icon from bottom part of the Layers panel and select Inner Shadow.

Apply Gradient Overlay.

Click in the color bar to open the Gradient Editor and set the color stops as shown. Click OK to close the Gradient Editor dialog box.

We’ve got the next result:

Now we’ll represent the ring for the bauble’s support, use the Ellipse Tool (U) to draw the next ellipse. Place the layer under the layer containing the bauble’s support.

Set Fill to 0% for this layer and click on Add a layer style icon from bottom part of the Layers panel and select Stroke.

Select Fill Type – Gradient and click in the color bar to open the Gradient Editor, set the color stops as shown. Click OK to close the Gradient Editor dialog box.

We’ve got the next result:

Take the Line Tool (U), set Weight to 3px in Options bar and draw the thread for the bauble.

Click on Add a layer style icon from bottom part of the Layers panel and select Gradient Overlay.

Click in the color bar to open the Gradient Editor and set the color stops as shown. Click OK to close the Gradient Editor dialog box.

We’ve got the next result:

Now we have to represent the glowing on the bauble’s top and bottom parts. Create a new layer and select Soft Round brush of white color from Brush Tool (B). Set Opacity to 15% in Options bar.

Add some brushstrokes as shown.

Set Fill to 70% for this layer. As it was describes before, insert the mask on the layer by choosing Add layer mask on the bottom part of the Layers panel and choose the Soft Mechanical brush of black color (set Opacity to 10% in Options bar). Paint in the mask to hide the edges of the glow.

Combine in a group all the layers composing the Christmas bauble (press CTRL button to select the necessary layers and hold on the left mouse’s button while dragging the selected layers on Create a new group icon from bottom part of the Layers panel). Make a copy of the group and Merge Down into a single layer by pressing Ctrl+E. Using the Free Transform (Ctrl+T) command, change the placement and the sizes as it is shown on the picture.

Make a selection on the thread, using the Rectangular Marquee Tool (M).

Right-click inside the selection to select Layer via Copy, use Free Transform (Ctrl+T) command to change the sizes of thread the as it is shown on the picture. Press Ctrl+E to Merge Down into a single layer.

Make a copy of the layer containing the bauble and choose the Free Transform (Ctr+T) command to change the copy’s sizes as it is demonstrated below:

Now we have to insert the mask on each layer with the Christmas bauble on the right and left sides. Insert the mask on the layers by choosing Add layer mask on the bottom part of the Layers panel and choose the Soft Round brush of black color.

Paint in the masks using this brush to hide the Christmas baubles’ glowing.

Click Create new fill or adjustment layer from bottom part of the Layers panel and click to Curves to adjust the curve shape as shown to make a little color corrections.

We’ve got the next result:

Happy New Year and Merry Christmas!

View full size here.