Technical analysis by Candydreamz about Symbol PAXG: Sell recommendation (5/10/2025)

Overview:This 1-hour chart on XAUUSD highlights a clear 5-wave Elliott impulse, confirmed with Fibonacci extensions and the Awesome Oscillator (AO). Current structure suggests Wave (5) is in play, offering a high-probability short opportunity from the Wave (4) retracement zone.🧠 Elliott Wave Count:Wave (1): Initial bearish legWave (2): Minor corrective pullbackWave (3): Strong impulse confirmed by AO convergenceWave (4): Corrective structure that respects the top of Wave (1) — valid Elliott structureWave (5): Now in progress, supported by AO divergence → momentum weakening📌 Note: Wave 1 and Wave 3 are commonly measured using AO convergence, validating the strength of the impulse waves. Conversely, Wave 5 is often identified by AO divergence, signaling trend exhaustion.📐 Fibonacci Extension Targets (Measured from Wave 4):Expected zone for Wave (5) termination:1.618 Fib: $3,312.172.618 Fib: $3,280.25 (most common)4.236 Fib: $3,255.054.886 Fib: $3,241.30 (extreme extension)📉 Wave (5) often terminates at 2.618 or 4.236 Fibonacci levels, especially when supported by AO divergence.📊 AO (Awesome Oscillator) Insights:✅ Wave (1) to (3): Clear convergence validates impulse🚨 Wave (5): AO showing divergence = weakening sell momentumConfirms Wave (5) status and end-stage trend behavior🛠️ 🔴 Short-Only Strategy: Trade Wave (5) From Wave (4)Entry Criteria:Short initiated near the Wave (4) zone (~$3,330–$3,347)Strong rejection candle (e.g., engulfing, pin bar) or breakdown confirmationAO turning from green to red or histogram weakeningStop Loss:Above Wave (4) high = ~$3,347Take Profit Levels:🎯 TP1: $3,312 (1.618 Fib)🎯 TP2: $3,280 (2.618 Fib)🎯 TP3: $3,255 (4.236 Fib)🎯 TP4 (optional final target): $3,241 (4.886 Fib)Risk Management Tip: Adjust position sizing to align with stop above Wave (4) and TP zones at Fib targets.🧩 Final Thoughts:✅ High-probability bearish structure from Wave (4)🚫 No bullish setups considered — focus is only on shorting Wave (5)🔍 AO confirms both impulse strength and trend exhaustion via convergence/divergence📐 Fibs align with standard Wave (5) projections📈 Chart Context:Gold (XAUUSD) – 1H timeframeIndicators: Elliott Wave, AO, FibonacciAnalysis Date: 10 May 2025Bias: Bearish only