Is understanding trends the core of trading?GoldOANDA:XAUUSDPrecision_Strategic_TraderGold Price Analysis: Gold prices have been under pressure at the 4200 level and have been fluctuating downwards. Recently, prices have repeatedly tested the 4000 mark, a key support level, with intense competition around this level. In the short term, prices are in a weak, volatile state without a clear directional direction, but the overall downtrend remains clear. Each rebound has been met with resistance at the downtrend line, and the highs of these rebounds are slowly declining. On the 4-hour chart, we can clearly see that gold is experiencing a volatile decline, with the lows already testing the key support area of 3960. If the current downward momentum continues, the possibility of new lows cannot be ruled out, given the continued weakness on the weekly chart. Gold Technical Analysis: On the 4-hour chart, gold prices are in a downward channel, with the Bollinger Bands continuing to widen downwards and multiple moving averages providing resistance. However, the KDJ indicator has turned upwards from the oversold zone, suggesting a short-term technical rebound, but the upside potential is limited. The weekly chart has closed lower for two consecutive weeks, with short-term moving averages diverging downwards, indicating a clear downtrend. However, the KDJ indicator has entered oversold territory, suggesting that the downward momentum will gradually slow down. Overall, gold prices are currently in a reasonable consolidation phase after the previous surge, forming a descending triangle pattern around $4,000, with increasing divergence between bulls and bears. Yesterday, gold tested the downtrend line at $4040 but subsequently fell back. Those who have been following this trend know the importance of the $4040 level and advised considering short positions targeting $4010-$4000. The downward trend in gold continues, and for the bulls to see a rebound, they must break out of this downward trend, starting with the resistance level of the 4-hour downtrend channel at $4040. Judging from the current trend, the 4000 mark has shown some resilience and has been successfully held. If the closing price falls below the 4000 mark for two consecutive days, the downside risk will increase. In summary, the recommended trading strategy for gold is to primarily sell on rallies and secondarily buy on dips. The key resistance level to watch in the short term is 4040-4050, while the key support level is 3980-3960. Please stay tuned for further updates. Please follow the trading signals closely.