Technical analysis by ProspireWealth about Symbol PAXG: Sell recommendation (5/15/2025)

Technical Breakdown on Gold Spot (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): 3,240.00 Value Area Low (VAL): 3,180.00 Point of Control (POC): 3,235.17 High-Volume Nodes: Around 3,220–3,240, suggesting heavy trading and possible resistance. Low-Volume Gaps: Near 3,100–3,120, hinting at inefficient price action and potential magnet zones. b) Liquidity Zones: Potential Stop Clusters: Above 3,240 (recent highs) Below 3,100 (recent swing lows) Order Absorption Zones: 3,180–3,200 showed high CVD divergence, signaling passive buy support. c) Volume-Based Swing Highs/Lows: Swing Highs with Volume Spike: 3,240.00 Swing Lows with Volume Spike: 3,100.00 (confirming reversal support) d) CVD + ADX Indicator Analysis: Trend Direction: Currently range-bound, with attempts at both upside and downside breakouts. ADX Strength: ADX < 20: Weak trend – indecisive market phase. CVD Confirmation: Previous CVD downtrend aligned with price drop → Strong supply Latest CVD slight uptick, price holding = potential demand returning, but not yet confirmed. 2. Support & Resistance Levels a) Volume-Based Levels: Support: VAL: 3,180 Recent swing low: 3,100 (with absorption) Resistance: VAH: 3,240 POC: 3,235 Channel top (3,200–3,220 zone) b) Gann-Based Levels: Swing High (Gann): 3,240 Swing Low (Gann): 3,100 Retracements: 1/2 Level: 3,170 2/3 Level: 3,180–3,190 → aligns with VAL 3. Chart Patterns & Market Structure a) Trend: Range-bound (confirmed by weak ADX and opposing CVD moves) b) Notable Patterns: Falling Wedge in play, bullish breakout potential above 3,160 Parallel Channels diverging: one bullish correctional channel, one bearish continuation Breakout Attempt: Minor bullish breakout from micro-channel underway (watch volume follow-through) 4. Trade Setup & Risk Management a) Bullish Entry (pending CVD confirmation): Entry Zone: 3,140–3,150 (on breakout retest) Targets: T1: 3,200 T2: 3,235 (POC) Stop-Loss (SL): 3,100 RR: ~1:2 minimum b) Bearish Entry (if rejection at POC/VAH): Entry Zone: 3,230–3,240 Target: T1: 3,180 Stop-Loss (SL): 3,260 RR: ~1:2 minimum c) Position Sizing: Risk only 1–2% of total capital per trade