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): 3395.88 Value Area Low (VAL): 3311.18 Point 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 Levels a) Volume-Based Levels: Support: VAL: 3311.18 POC: 3381.67 Swing Low with Absorption: 3310 Resistance: VAH: 3395.88 Swing High: 3400–3410 zone b) Gann-Based Levels: Gann Swing Low: 3311 Gann Swing High: 3395 Key Retracements (From 3311 to 3395): 1/2 level: 3353 1/3 level: 3339 2/3 level: 3367 3. Chart Patterns & Market Structure a) Trend: Bullish Supported 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 Management a) Bullish Entry (Confirmed by CVD + ADX): Entry Zone: 3381–3385 (retest of POC/support). Targets: T1: 3410 T2: 3440 Stop-Loss (SL): Below swing low at 3350 RR: Minimum 1:2 b) Bearish Entry (Wait for breakdown of trend): Entry Zone: 3310 (if price breaks below support). Target: T1: 3275 Stop-Loss (SL): Above 3350 (last high-volume rejection) RR: Minimum 1:2 c) Position Sizing: Risk only 1–2% of capital per trade.