Technical analysis by Henrytrader93 about Symbol PAXG: Buy recommendation (8/19/2024)

On the 1-hour timeframe, XAUUSD has undergone a strong rally and is currently correcting. The price is forming a cup and handle pattern with strong support at around 2,485 - 2,490. This is an important support zone as it coincides with the EMA 34 and EMA 89, indicating that the strength of the uptrend is still maintained.Possible scenario:Uptrend continues: If the price holds above this support zone and bounces back, we can expect another rally with a target towards 2,520 and further towards 2,540.Downtrend: However, if the price breaks this support zone, a deeper bearish scenario can take place with the nearest target being the 2,432 zone. This is an important support zone and also the previous low.Conclusion:The main trend is still up, but pay attention to the support zone of 2,485 - 2,490. If the price breaks below this zone, a short-term downtrend may take place. Conversely, if the price rebounds from here, it may signal a strong bullish move.Trading strategy: Wait for the price to react at the support zone before deciding to enter an order. If there is a clear bullish signal, you can consider entering a buy order with a higher target. Conversely, if the price breaks the support zone, a sell order can be considered with a target at the price zone of 2,432.