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 + ADX1. Key Observations (Volume, Gann & CVD + ADX Focused)a) Volume Profile Insights:Value Area High (VAH): 3,312Value Area Low (VAL): 3,230Point of Control (POC):High-Volume Nodes: Dense cluster near 3,229–3,250 and again around 3,312Low-Volume Gaps: Noticeable void between 3,260 – 3,290, suggesting possible fast movement zoneb) Liquidity Zones:Liquidity Pools:Order Absorption:c) Volume-Based Swing Highs/Lows:Swing High (Volume Spike): 3,312 – area of rejection with reduced follow-throughSwing Low (Reversal Support): 3,230 – heavy volume absorption followed by rallyd) CVD + ADX Indicator Analysis:Trend Direction: Currently shifting bullish after a prolonged downtrendADX Strength: ADX > 20 with DI+ > DI- (early bullish momentum building)CVD Confirmation:2. Support & Resistance Levelsa) Volume-Based Levels:Support:Resistance:b) Gann-Based Levels:Swing Low: 3,230Retracement Levels:3. Chart Patterns & Market Structurea) Trend: Turning bullish (CVD rising, ADX > 20, price forming HLs)b) Notable Patterns:Reversal Base formed near 3,230 with upward breakoutForming ascending channel – prices respecting the lower boundary supportRetest of breakout zone (POC + lower trendline) acting as potential launchpad4. Trade Setup & Risk Managementa) 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. 1:2.5b) 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. 1:2c) Position Sizing:Use 1–2% capital per trade to manage downside risk