Technical analysis by ElizatradingQueen about Symbol PAXG: Sell recommendation (4/13/2025)

This 15-minute chart for Gold (XAU/USD) highlights a bearish reversal from a key resistance zone near $3,240. The price formed a strong bearish engulfing pattern after testing resistance, suggesting downside momentum. A potential short trade setup is illustrated with a target at $3,220, aligning with a previous demand zone. The blue arrow indicates expected price movement, supported by recent volatility and price structure. Traders should watch for confirmation before entering positions.1. Price Structure & Key Zones:Resistance Zone (~$3,240):This zone has been tested multiple times (marked with yellow and shaded boxes), acting as a strong supply area. Each test results in rejection, indicating sellers are defending this level.Support Zone (~$3,210–$3,220):Highlighted at the bottom, this demand zone has held price up in the past, making it a logical target for any short setups.---2. Price Action Patterns:Bearish Engulfing Patterns:Several shaded areas on the chart highlight strong bearish candles following bullish ones, indicating momentum shifts in favor of the bears.Fakeout (Yellow Box):A small bullish breakout above a recent high failed, leading to a sharp reversal. This often traps long traders and fuels downside momentum.---3. Current Price Action:The latest candles show a loss of bullish momentum after testing the resistance zone again.A strong red candle followed by lower highs signals a potential bearish continuation.A blue arrow points downward, suggesting that a short setup is in play with a clear target at $3,220, as marked.---4. Trade Idea:Bias: Bearish (short-term)Entry: Below $3,232 confirmation candleTarget: $3,220 (marked)Stop Loss: Above $3,240 resistance zoneRisk/Reward: Appears favorable given the structureTarget reached successfully