Technical analysis by Rich_From_Home about Symbol PAXG: Buy recommendation (7/21/2025)

This analysis outlines a potential long (buy) position on Gold (XAU/USD) based on a breakout strategy. Trade Rationale The price is currently consolidating below the key resistance level of 3,401. The plan is to enter a long trade on the assumption that if the price can break and hold above this level, it will continue its bullish momentum towards the next major resistance zone. Confirmation for Entry The entry is not immediate. The trade should only be taken after a 1-hour candle body closes decisively above the 3,401.770 resistance. This confirmation indicates that buyers are in control and helps avoid a "fakeout" where the price spikes and quickly reverses. Key Trade Levels Entry: 3,401.770 (Only after the confirmation candle closes). Take Profit (TP): 3,415.437 Reason: This target is set at the 1.618 Fibonacci extension level, measured from a Daily timeframe swing, which represents a significant potential resistance area. Stop Loss (SL): 3,396.338 Reason: Placed below the recent price consolidation area to protect against minor volatility. This setup offers a favorable Risk/Reward Ratio of 2.52, making it a strategically sound trade if the entry conditions are met.