Has the gold trend reversed?Gold / U.S. DollarFOREXCOM:XAUUSDGoldTrader_X XAUUSD Update: Gold Stages a Sharp V-Shaped Rebound – Is the Bearish Trend Really Over? Market Overview Gold opened Wednesday under pressure, extending the weakness seen at the previous session's close. However, the market quickly reversed after testing the 3960 support area, producing a strong V-shaped recovery that pushed price back toward the major resistance zone around 4100-4120. According to my previous trading plan, I was looking to initiate short positions in the 4040-4050 area. Unfortunately, the market never offered that entry and instead declined directly toward 3960 before reversing sharply. As price rallied back into the resistance zone, I followed my trading plan and entered a short position between 4100 and 4110. The position remains open. Current downside targets remain: 4050-4040 4020-4000 Fundamental Analysis The U.S. Dollar Index has weakened over recent sessions, reducing some of the pressure on gold. At the same time, crude oil remains below its 200-day moving average, easing inflation concerns and limiting expectations of additional inflation-driven tightening. These factors could support short-term price stabilization. However, despite the recent rebound, the broader macro environment remains challenging for gold. Markets continue to focus on U.S. economic data and Federal Reserve policy expectations, meaning volatility is likely to remain elevated. Technical Analysis Daily Chart The long-term bearish structure remains intact. Price continues to trade below the 5-day, 10-day, and 20-day moving averages, all of which continue to slope downward and act as dynamic resistance. The MACD remains below the zero line. Although bearish momentum has slowed slightly, there is still no confirmed signal that a long-term bottom has formed. The RSI has entered deeply oversold territory, suggesting that technical rebounds are possible, but oversold conditions alone do not indicate a trend reversal. 4-Hour Chart Gold produced an impressive recovery after briefly falling to 3960, leaving a long lower shadow on the 4-hour candle. This indicates buyers defended support aggressively. However, the broader structure remains cautious. The Bollinger Bands continue to point lower, suggesting that the recent rebound may simply represent a corrective rally within the larger downtrend. The key resistance remains at 4115. Only a sustained breakout above this level would begin to weaken the current bearish structure. On the downside, 3960 remains the most important support. A confirmed break below this level could open the door toward the 3900 region. Trading Strategy Sell Setup Entry: 4110-4120 Stop Loss: Above 4140 Targets: TP1: 4050 TP2: 4040 TP3: 4000 Extended Target: 3970-3960 Buy Setup If price revisits the 3950-3970 support zone and shows signs of stabilization: Entry: 3950-3970 Stop Loss: Below 3940 Targets: TP1: 4050 TP2: 4080 Key Levels to Watch Resistance 4100-4115 4120 4140 Support 3970 3960 3950 3900 Trading Outlook Gold experienced an exceptionally volatile session, with an intraday swing of more than 150 points, highlighting the intense battle between buyers and sellers. While the sharp rebound demonstrates that demand remains active near major support, the higher-timeframe bearish trend has not yet been invalidated. For now, I continue to view rallies into major resistance as selling opportunities until buyers can establish a sustained move above 4115-4120. Patience and disciplined execution remain essential in this type of high-volatility market. Thanks for reading! If you have a different opinion or your own trading strategy, feel free to share it in the comments. I enjoy discussing market structure, technical analysis, and trading psychology with fellow traders. If you found this analysis helpful, don't forget to Like 👍, Follow ⭐, and leave a comment. Let's learn from each other and become better traders together. Good luck, and trade safe!