Technical analysis by KironKavanagh about Symbol PAXG: Buy recommendation (7/18/2024)

Let’s perform a top-down analysis on Gold (XAU/USD) using the provided charts across multiple timeframes. We will start with the higher timeframes and move down to the lower ones to identify the overall trend, key levels of support and resistance, and any notable patterns or setups. Daily Timeframe Analysis 1.Trend Identification: •The daily chart shows an overall uptrend with higher highs and higher lows. •Price has been making consistent gains with retracements to key support zones. 2.Support and Resistance: •Key Support Levels: Around 2300 and 2100. •Key Resistance Levels: Around 2500 (previous swing high). 3.Patterns: •The chart shows a break of structure (BOS) at multiple points indicating a strong bullish trend. •The RSI is currently showing a possible bearish divergence, suggesting a potential pullback or consolidation. 4-Hour Timeframe Analysis 1.Trend Identification: •The 4-hour chart also confirms the uptrend seen in the daily chart. •Recent price action indicates a pullback from the resistance level around 2480-2500. 2.Support and Resistance: •Immediate Support Levels: Around 2420 and 2350. •Immediate Resistance Levels: Around 2480. 3.Patterns: •The chart shows a change of character (ChoCH) indicating a potential shift in the short-term trend. •RSI on the 4-hour chart is moving towards the oversold region, suggesting a potential bounce from the support level. 1-Hour Timeframe Analysis 1.Trend Identification: •The 1-hour chart shows more detailed price action with minor support and resistance levels. •The chart indicates a recent break of structure and possible formation of a lower high, suggesting a potential short-term downtrend. 2.Support and Resistance: •Immediate Support Levels: Around 2420 and 2400. •Immediate Resistance Levels: Around 2480 and 2500. 3.Patterns: •The chart shows potential bullish setups forming around the 2420 support level. •RSI is oversold, suggesting a possible short-term buying opportunity. 15-Minute Timeframe Analysis 1.Trend Identification: •The 15-minute chart shows intraday price action and minor fluctuations. •The recent downtrend on this timeframe might be a retracement within the larger timeframes’ uptrend. 2.Support and Resistance: •Immediate Support Levels: Around 2440 and 2420. •Immediate Resistance Levels: Around 2460 and 2480. 3.Patterns: •The chart shows a potential bullish divergence on the RSI, indicating a possible reversal. •The price is testing the minor support levels, which might provide short-term buying opportunities. Summary and Trading Plan •Long-Term (Daily/4-Hour): The overall trend is bullish with potential pullbacks. Key levels to watch are 2420 for support and 2480 for resistance. •Medium-Term (1-Hour): The trend shows a potential retracement. Watch for support around 2420 and resistance around 2480. •Short-Term (15-Minute): Intraday traders should watch for reversals around the 2420-2440 support levels with possible targets at 2460-2480. Conclusion Gold remains in an overall uptrend with strong support around 2420 on the daily and 4-hour charts. Short-term retracements should be viewed as potential buying opportunities within the larger trend, particularly around key support levels. Traders should monitor RSI and price action closely for confirmation of entry and exit points.