Technical analysis by Mentor_Michael03 about Symbol PAXG: Sell recommendation (10/6/2025)

Gold (XAUUSD) is now approaching a Potential Reversal Zone (PRZ) near 3940–4000, where sellers may start gaining control after a strong bullish rally. The recent impulse move has pushed price into an overextended area, hinting at possible profit-taking and correction ahead. 🔍 Technical Outlook: Current Price: 3947 PRZ (Reversal Zone): 3940 – 4000 1st Target: 3820 – 3800 (initial retracement zone) Final Target: 3330 – 3320 (major support & liquidity zone) Key Support Point: 3330–3320 Structure: Still bullish overall, but overbought and due for correction ⚙️ Market Logic: After forming consistent higher lows, gold surged with strong momentum. However, the market is now testing a major resistance block, and any sign of rejection or bearish confirmation candle could trigger a deeper pullback toward lower supports. Traders should watch for confirmation signals — such as bearish engulfing or trendline break — before taking short entries. 🎯 Educational Note: In strong uptrends, a pullback from PRZ zones is natural and healthy. These retracements often provide the best opportunities for re-entry in line with the dominant trend. 💬 Summary: “Gold is testing a potential reversal area — caution advised for late buyers, while proactive traders can prepare for a technical pullback.”