Technical analysis by SuvashishFx about Symbol PAXG: Buy recommendation (5/12/2025)

Gold has been respecting a clear descending channel on the 1H timeframe. After a strong bullish impulse, price has been consolidating within this structured decline, showing lower highs and lower lows. But something interesting is happening now... 🔍 Current Observations: Price remains within the lower boundary of the descending channel — showing signs of compression. Volume spike detected near recent lows while candles remain relatively small in range. This is a classic “Volume > Price” divergence, often associated with smart money absorption or hidden accumulation. 💡 What This May Mean: Despite the bearish structure: The increase in volume without new strong lows could indicate that institutional players (smart money) are absorbing sell orders from retail traders. These setups can often lead to a sharp upward breakout, especially if the price closes above the channel midline or recent swing high. 📌 What to Watch: A confirmed break above the channel (preferably with strong volume) would validate a potential reversal. Support remains fragile around the lower boundary. Failure to hold may trigger a final flush or fake-out before reversal. 🔔 Strategy Ideas: ⚠️ Don't jump in early — wait for a clean breakout candle with follow-through. ✅ Look for confirmation like: Bullish engulfing at key support Volume spike + breakout of last 1–2 candle highs Break of descending trendline with a close 🧠 Final Thought: This may be a smart money trap setup — where institutions accumulate just before the trend turns. Keep your eyes on volume + structure for the clearest signals.