Technical analysis by Artiverma256 about Symbol PAXG on 3/20/2025

This chart represents Gold (XAU/USD) on a 4-hour timeframe, showing a strong uptrend within a rising channel. However, based on the price action, a potential trend reversal or correction might be forming.1. Current Market Structure & Trend• The price is currently trading near the upper boundary of the rising channel.• A strong bullish rally has taken place, pushing the price from a lower support zone to its current level (~$3,044).• However, momentum appears to be slowing down, and the price is showing signs of exhaustion.• If the price fails to sustain above this channel, a breakdown could occur, leading to a decline.2. Key Support & Resistance Levels• Resistance:• The price is facing resistance near the upper boundary of the rising channel (~$3,050-$3,060).• If it breaks above, further upside towards $3,100-$3,120 could be possible.• Support Levels & Targets:• If the price starts rejecting from the channel, it may drop towards Target 1 (~$2,960).• A further break below this level could send gold towards Target 2 (~$2,900 or lower).3. Bearish Trading Setup (Potential Sell Opportunity)• The chart suggests a possible short (sell) setup based on the structure:1. If price fails to break above the channel and starts forming lower highs.2. If price breaks below the rising channel support, confirming bearish momentum.3. A retest of the broken support before continuing downward could provide a better entry.• Confirmation Needed:• Watch for bearish candlestick patterns (e.g., engulfing candles, shooting star) near resistance.• A break and close below support (~$3,020-$3,000) could signal the start of a downtrend.4. Alternative Bullish Scenario• If the price sustains within the channel and breaks above resistance (~$3,050-$3,060),• Further upside movement towards $3,100+ could be expected.• A breakout above this resistance could invalidate the bearish setup.5. Final Thoughts & Trading Plan• Bearish Bias (Preferred Trade Idea):• Wait for confirmation of a trend break below the rising channel.• Short entry on a pullback to resistance after the breakdown.• Targets: $2,960 (Target 1) and $2,900 (Target 2).• Bullish Scenario (Less Likely):• If price breaks above the resistance zone, look for buying opportunities towards $3,100+.Risk Management• If shorting, place stop-loss above the recent high (~$3,060-$3,070) to avoid false breakouts.• If longing, ensure confirmation above resistance before entry.This analysis suggests a potential short trade setup in gold if the price breaks the rising channel. However, confirmation is crucial before entering any position.Active Trade 600+ pips running profit,