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

Technical Breakdown on Gold Spot (XAU/USD) – 1H Timeframe using Volume Profile, Gann, and CVD + ADX 1. Key Observations (Volume, Gann & CVD + ADX Focused) a) Volume Profile Insights: Value Area High (VAH): 3,388.2 Value Area Low (VAL): 3,296.7 Point of Control (POC): 3,385.3 High-volume nodes: Dense consolidation between 3,365 – 3,390, indicating institutional activity and balance. Low-volume gaps: Between 3,340 – 3,360 (inefficient move up, price may revisit). b) Liquidity Zones: Stop clusters likely at: Above 3,388 (previous swing high) Below 3,300 (recent swing low) Order absorption areas: Around 3,320 where price stalled with large volume, indicating passive buyers absorbing aggressive sellers. c) Volume-Based Swing Highs/Lows: Swing High: 3,388.5 (strong rejection & volume spike) Swing Low: 3,297.1 (volume bounce support area) d) CVD + ADX Indicator Analysis: Trend Direction: Range-bound currently (sideways movement in CVD with weak momentum) ADX Strength: ADX < 20 → Indicates weak trend or consolidation CVD Confirmation: CVD is showing slight bullish divergence vs. price → early demand buildup Not yet confirmed with strong trend continuation 2. Support & Resistance Levels a) Volume-Based Levels: Support: VAL: 3,296.7 Absorption zone: 3,320.0 Resistance: VAH: 3,388.2 Swing high: 3,388.5 b) Gann-Based Levels: Recent swing low: 3,297.1 Retracement levels (from recent high 3,388.5 to low 3,297.1): 1/3 Retracement: 3,327.6 1/2 Retracement: 3,342.8 2/3 Retracement: 3,358.0 3. Chart Patterns & Market Structure a) Trend: Range-bound (confirmed by ADX < 20 and flat CVD) b) Notable Patterns: Potential bullish falling wedge pattern forming Projection suggests price might bounce from 3,320 toward upper channel (3,370+) Watch for retest of POC (3,385) for breakout confirmation 4. Trade Setup & Risk Management a) Bullish Entry (Pending confirmation from breakout and CVD support): Entry Zone: 3,320 – 3,325 (channel + volume support) Targets: T1: 3,342.8 (50% Gann) T2: 3,385.3 (POC and VAH) Stop-Loss (SL): Below 3,297 (swing low/VAL) RR: Minimum 1:2 b) Bearish Entry (If rejection at VAH and CVD turns bearish): Entry Zone: 3,385 – 3,388 Target: T1: 3,320.0 Stop-Loss (SL): Above 3,400 RR: Minimum 1:2 c) Position Sizing: Risk only 1-2% of capital per trade