Technical analysis by AmirMIssa about Symbol PAXG: Sell recommendation (5/9/2025)

In this brief analysis, we examine a scalping opportunity on Gold (XAU/USD) using the 1-minute chart, focusing on a short-term technical setup supported by both price action and indicators.The chart displays a well-defined downward trend, confirmed by two descending red trendlines. These trendlines have been respected consistently by the price, indicating a strong bearish structure. At the time of analysis, the price action approached a key resistance zone around the 3,319 level.This resistance is notable for two reasons: it represents a horizontal level tested multiple times, and it coincides with a descending trendline, forming a confluence that increases the probability of a price rejection. This dual-resistance scenario presents a compelling case for a short entry.A sell position was initiated near this resistance area. The stop loss is placed above the resistance zone, near 3,325, to protect against a breakout. The take profit is set around 3,301, targeting a recent support level established by a strong previous low. This provides a clean technical target within the current structure.Supporting this trade idea, both the MACD and Stochastic Oscillator are showing overbought signals and have begun turning downward, suggesting weakening bullish momentum and the potential for a bearish reversal.The trade offers a risk-to-reward ratio of approximately 1:1.97, which is considered favorable in scalping strategies, where precision and timing are critical.