Technical analysis by ProspireWealth about Symbol PAXG: Buy recommendation (5/7/2025)

Here's a detailed technical breakdown of the Gold Spot / USD (XAU/USD), 1H timeframe chart using Volume Profile, Cumulative Volume Delta (CVD), and ADX:1. Key Observations (Volume, Gann & CVD + ADX Focused)a) Volume Profile Insights:Value Area High (VAH): 3395.88Value Area Low (VAL): 3311.18Point of Control (POC): 3381.67 (recent) / 3311.18 (previous)High-volume nodes: Concentrated around 3380–3390 and earlier at 3300–3320, suggesting strong buyer interest.Low-volume gaps: Between 3350–3370, indicating weak resistance and potential for swift price movement.b) Liquidity Zones:Stop Clusters: Around 3400 (recent swing high), and 3310 (swing low/POC) — potential liquidity sweep zones.Order Absorption: Strong delta buildup near 3380–3390 indicates heavy buying pressure and potential large-position accumulation.c) Volume-Based Swing Highs/Lows:Swing High (Volume Spike): 3395.88 – recent high with strong breakout volume.Swing Low (Volume Spike): 3311.18 – confirmed reversal point with heavy absorption.d) CVD + ADX Indicator Analysis:Trend Direction: Uptrend (confirmed by multiple bullish CVD bars and higher highs).ADX Strength: ADX > 20 with DI+ > DI- ⇒ Confirmed uptrend.CVD Confirmation: Rising CVD with bullish price action = Strong demand confirmation. Market is led by aggressive buyers.2. Support & Resistance Levelsa) Volume-Based Levels:Support:VAL: 3311.18POC: 3381.67Swing Low with Absorption: 3310Resistance:VAH: 3395.88Swing High: 3400–3410 zoneb) Gann-Based Levels:Gann Swing Low: 3311Gann Swing High: 3395Key Retracements (From 3311 to 3395):1/2 level: 33531/3 level: 33392/3 level: 33673. Chart Patterns & Market Structurea) Trend: BullishSupported by rising price structure, channel breakout, and rising CVD.b) Notable Patterns:Bullish channel forming (highlighted in purple).Breakout above previous consolidation range (POC breakout).Retest of POC at 3381.67 acting as support now.4. Trade Setup & Risk Managementa) Bullish Entry (Confirmed by CVD + ADX):Entry Zone: 3381–3385 (retest of POC/support).Targets:T1: 3410T2: 3440Stop-Loss (SL): Below swing low at 3350RR: Minimum 1:2b) Bearish Entry (Wait for breakdown of trend):Entry Zone: 3310 (if price breaks below support).Target:T1: 3275Stop-Loss (SL): Above 3350 (last high-volume rejection)RR: Minimum 1:2c) Position Sizing: Risk only 1–2% of capital per trade.