Technical analysis by Mentor_Michael03 about Symbol PAXG: Sell recommendation (8/7/2025)

XAUUSD Bearish SMC Analysis – Institutional Rejection from Supply Zone Gold (XAUUSD) is showing a clear bearish structure after rejecting a major supply zone at premium pricing. This setup is aligned with Smart Money Concepts (SMC) and reflects how institutions manipulate liquidity and order flow before major price moves. 🔍 Market Structure Context: The market had been trending upward with higher highs and higher lows, until it approached a key premium supply zone near $3,420. At this level, price stalled, creating internal Equal Highs (liquidity) — a common trap used by institutions to grab orders before reversing. 🔄 Change of Character (CHoCH): A clear CHoCH was printed when price broke below the most recent higher low, signaling a shift from bullish to bearish structure. This change marked the first early signal that institutional order flow has flipped bearish, and distribution is underway. 📉 Break of Structure (BOS): Following the CHoCH, the market confirmed intent with a clean BOS to the downside. This structural break confirms bearish control and validates short bias. 🧲 Liquidity Engineering: Equal Highs were swept at the top, indicating a liquidity grab before institutions drove price downward. This move traps breakout buyers and provides large players with sell-side execution at premium pricing. 🧱 Fair Value Gap (FVG) & Supply Zone Mitigation: After BOS, price retraced into a Bearish Fair Value Gap (FVG) and the origin of the supply zone, offering a high-probability entry. The rejection from this zone showed imbalance was respected and no bullish continuation existed — further validating the short setup. 🔍 Confluences for the Bearish Bias: ConfluenceConfirmation CHoCHStructure flipped bearish BOSBearish continuation confirmed Liquidity SweepEqual highs taken FVG RetestSmart Money re-entry signal Supply Zone MitigationInstitutional reaction confirmed 📘 Educational Summary: This setup exemplifies a complete Smart Money bearish reversal model: Premium pricing ✅ Liquidity taken ✅ Structure flipped (CHoCH + BOS) ✅ Supply & FVG respected ✅ It reflects how institutions build positions quietly, using engineered liquidity to trap retail traders, and then drive price with high-volume imbalance moves.