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 + ADX1. Key Observations (Volume, Gann & CVD + ADX Focused)a) Volume Profile Insights:Value Area High (VAH): 3,388.2Value Area Low (VAL): 3,296.7Point of Control (POC): 3,385.3High-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 consolidationCVD Confirmation:CVD is showing slight bullish divergence vs. price → early demand buildupNot yet confirmed with strong trend continuation2. Support & Resistance Levelsa) Volume-Based Levels:Support:VAL: 3,296.7Absorption zone: 3,320.0Resistance:VAH: 3,388.2Swing high: 3,388.5b) Gann-Based Levels:Recent swing low: 3,297.1Retracement levels (from recent high 3,388.5 to low 3,297.1):1/3 Retracement: 3,327.61/2 Retracement: 3,342.82/3 Retracement: 3,358.03. Chart Patterns & Market Structurea) Trend: Range-bound (confirmed by ADX < 20 and flat CVD)b) Notable Patterns:Potential bullish falling wedge pattern formingProjection suggests price might bounce from 3,320 toward upper channel (3,370+)Watch for retest of POC (3,385) for breakout confirmation4. Trade Setup & Risk Managementa) 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 1:2b) Bearish Entry (If rejection at VAH and CVD turns bearish):Entry Zone: 3,385 – 3,388Target:T1: 3,320.0Stop-Loss (SL): Above 3,400RR: Minimum 1:2c) Position Sizing:Risk only 1-2% of capital per trade