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

Technical Breakdown on Gold Spot (XAU/USD) – 1H Chart using Volume Profile, Gann, and CVD + ADX 1. Key Observations (Volume, Gann & CVD + ADX Focused) a) Volume Profile Insights: Value Area High (VAH): 3,312 Value Area Low (VAL): 3,230 Point of Control (POC): High-Volume Nodes: Dense cluster near 3,229–3,250 and again around 3,312 Low-Volume Gaps: Noticeable void between 3,260 – 3,290, suggesting possible fast movement zone b) Liquidity Zones: Liquidity Pools: Order Absorption: c) Volume-Based Swing Highs/Lows: Swing High (Volume Spike): 3,312 – area of rejection with reduced follow-through Swing Low (Reversal Support): 3,230 – heavy volume absorption followed by rally d) CVD + ADX Indicator Analysis: Trend Direction: Currently shifting bullish after a prolonged downtrend ADX Strength: ADX > 20 with DI+ > DI- (early bullish momentum building) CVD Confirmation: 2. Support & Resistance Levels a) Volume-Based Levels: Support: Resistance: b) Gann-Based Levels: Swing Low: 3,230 Retracement Levels: 3. Chart Patterns & Market Structure a) Trend: Turning bullish (CVD rising, ADX > 20, price forming HLs) b) Notable Patterns: Reversal Base formed near 3,230 with upward breakout Forming ascending channel – prices respecting the lower boundary support Retest of breakout zone (POC + lower trendline) acting as potential launchpad 4. Trade Setup & Risk Management a) Bullish Entry (CVD + ADX confirm uptrend): Entry Zone: 3,240–3,250 (near lower trendline + POC retest) Targets: Stop-Loss (SL): 3,225 (below POC + swing low) RR: Approx. 1:2.5 b) Bearish Entry (Only if trend reversal confirmed): Entry Zone: Below 3,225 (loss of POC/VAL with CVD breakdown) Target: T1: 3,200 (psychological + historical support zone) Stop-Loss (SL): 3,255 (back above POC) RR: Approx. 1:2 c) Position Sizing: Use 1–2% capital per trade to manage downside risk