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 + ADX1. Key Observations (Volume, Gann & CVD + ADX Focused)a) Volume Profile Insights:Value Area High (VAH): 3,382.24Value Area Low (VAL): 3,275.00 (approximate visual level)Point of Control (POC): 3,338.10High-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 Levelsa) Volume-Based Levels:Support:Resistance:b) Gann-Based Levels:Recent Confirmed High: 3,382Recent Confirmed Low: 3,272Retracements from High to Low:3. Chart Patterns & Market Structurea) Trend: Bearish-Ranging HybridConfirmed 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 Managementa) 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 1:2b) 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 minimumc) Position Sizing: Risk 1–2% of capital per trade.