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 + ADX1. Key Observations (Volume, Gann & CVD + ADX Focused)a) Volume Profile Insights:Value Area High (VAH): 3,240.00Value Area Low (VAL): 3,180.00Point of Control (POC): 3,235.17High-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: 3,240.00Swing 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 supplyLatest CVD slight uptick, price holding = potential demand returning, but not yet confirmed.2. Support & Resistance Levelsa) Volume-Based Levels:Support:VAL: 3,180Recent swing low: 3,100 (with absorption)Resistance:VAH: 3,240POC: 3,235Channel top (3,200–3,220 zone)b) Gann-Based Levels:Swing High (Gann): 3,240Swing Low (Gann): 3,100Retracements:1/2 Level: 3,1702/3 Level: 3,180–3,190 → aligns with VAL3. Chart Patterns & Market Structurea) Trend: Range-bound (confirmed by weak ADX and opposing CVD moves)b) Notable Patterns:Falling Wedge in play, bullish breakout potential above 3,160Parallel Channels diverging: one bullish correctional channel, one bearish continuationBreakout Attempt: Minor bullish breakout from micro-channel underway (watch volume follow-through)4. Trade Setup & Risk Managementa) Bullish Entry (pending CVD confirmation):Entry Zone: 3,140–3,150 (on breakout retest)Targets:T1: 3,200T2: 3,235 (POC)Stop-Loss (SL): 3,100RR: ~1:2 minimumb) Bearish Entry (if rejection at POC/VAH):Entry Zone: 3,230–3,240Target:T1: 3,180Stop-Loss (SL): 3,260RR: ~1:2 minimumc) Position Sizing:Risk only 1–2% of total capital per trade