Technical analysis by ProspireWealth about Symbol PAXG: Sell recommendation (5/12/2025)

Technical Breakdown on Gold Spot / USD (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): 3,382.24 Value Area Low (VAL): 3,275.00 (approximate visual level) Point of Control (POC): 3,338.10 High-Volume Nodes: Concentrated around 3,338–3,350 (volume acceptance zone). Low-Volume Gaps: Sharp drop region near 3,310 to 3,295 indicates a lack of market interest – prone to fast moves. b) Liquidity Zones: Stop Cluster Zones: Order Absorption Zones: c) Volume-Based Swing Highs/Lows: Swing High (Volume Spike): Near 3,381–3,382 (sharp rejection, bearish orderflow). Swing Low (Volume Spike): 3,272–3,275 zone, likely buyer absorption. d) CVD + ADX Indicator Analysis: Trend Direction: Downtrend (recent bearish pressure from CVD with price). ADX Strength: CVD Confirmation: 2. Support & Resistance Levels a) Volume-Based Levels: Support: Resistance: b) Gann-Based Levels: Recent Confirmed High: 3,382 Recent Confirmed Low: 3,272 Retracements from High to Low: 3. Chart Patterns & Market Structure a) Trend: Bearish-Ranging Hybrid Confirmed by low ADX (weak trend) but bearish pressure from CVD + lower highs. b) Notable Patterns: Bearish Flag: Price consolidating inside a descending channel after a breakdown. POC Retest Failure: Indicates inability to reclaim value area – bearish bias. Projection Path: Shows two outcomes – further drift down vs. range reclaim, with downside currently dominant. 4. Trade Setup & Risk Management a) Bearish Entry (CVD + ADX confirm downtrend): Entry Zone: 3,325–3,330 (POC rejection zone) Target: Stop-Loss (SL): 3,345 (above 1/3 Gann level and rejection wick) Risk-Reward Ratio (RR): Minimum 1:2 b) Bullish Entry (only if reclaim confirmed above POC): Entry Zone: 3,340–3,345 (on confirmed reclaim with bullish CVD crossover) Targets: Stop-Loss (SL): 3,325 (below reclaim point) RR: 1:2 minimum c) Position Sizing: Risk 1–2% of capital per trade.