Technical analysis by melikatrader94 about Symbol PAXG: Buy recommendation (6/2/2025)

Alright, so looking at this 4-hour chart of Gold, there's a really clean bullish flag pattern that’s just broken out, which is a strong continuation signal.You can see that after that big push upward, the price consolidated inside a downward (sloping channel for a few weeks. That’s pretty classic behavior. a strong move followed by a period of rest where the market cools off a bit, but without giving up too much ground. That’s what forms the "flag."Now, the exciting part is that we’ve just broken out of that channel to the upside, and it’s not just a breakout for the sake of it, it’s supported by an inverse head and shoulders right at the top of the channel. That’s a double confirmation that buyers are stepping in with conviction.The chart also marks two potential targets:The first target is around $3,480, which is a reasonable measured move based on the height of the flag.The second target is around $3,720, which would be a more extended continuation if the momentum kicks in.As long as the price holds above the breakout area (around $3,320–$3,340), this setup looks solid. If we pull back and retest that area and hold, that might be a great long entry with those two targets in mind.If price drops back into the channel, though, that could mean the breakout was a fakeout, so that level is key.$3395 is the short-term target of the long positionthe short term target touched