Technical analysis by Mentor_Michael03 about Symbol PAXG: Sell recommendation (10/8/2025)

Hello Traders and Investors, Gold has continued its strong bullish momentum over the past several weeks, pushing higher after every short consolidation phase. The metal remains in a clear uptrend structure, supported by a sequence of higher highs and higher lows, reflecting strong buyer dominance in the market. However, price has now entered a critical structure zone, demanding extra caution for long positions. 🔹 Technical Outlook: Current Price: Around $4,044 Key Resistance (PRZ): $4,040 – $4,090 Major Support Zone / Target Area: $3,830 – $3,850 Price has reached a Potential Reversal Zone (PRZ), where previous supply pressure and structural exhaustion tend to occur. The bullish momentum remains intact, but we are starting to see early signs of potential slowdown near the resistance zone. The LuxAlgo support and resistance levels clearly highlight this upper area as a major resistance, where sellers previously reacted strongly. Additionally, the Nadaraya-Watson envelope shows that price is now trading outside the upper band, signaling an overextended bullish leg — a technical condition that often precedes retracement. 🔸 Market Structure Insights: The last impulsive move created a vertical rally with limited pullbacks — a classic sign of momentum exhaustion. Candle formations near the resistance are showing upper wicks and shrinking body sizes, hinting that buying pressure is weakening. If a bearish rejection forms in this PRZ, a corrective move toward $3,840 – $3,850 is likely, which aligns with previous breakout structure and mid-term support. 🔹 Educational Breakdown: The Potential Reversal Zone (PRZ) concept comes from advanced harmonic and structural trading principles. It identifies a confluence of multiple factors such as: Previous resistance zones Overextension from moving averages Envelope deviation / dynamic resistance Volume exhaustion When these align, traders look for confirmation signals like bearish engulfing patterns, divergence on oscillators, or lower timeframe breakdowns to confirm potential reversals. 🔸 Scenario Planning: Bullish Scenario: If Gold breaks and closes decisively above $4,090, the uptrend may extend further toward $4,150 – $4,200 levels. Bearish Scenario (Preferred Setup): If price gets rejected from the $4,040 – $4,090 resistance**, we may see a retracement toward $3,840, completing a healthy correction within the broader bullish structure. 🔹 Conclusion: Gold remains fundamentally and technically bullish in the long term, but short-term correction risks are increasing as the price tests a major resistance zone. Traders should wait for clear rejection signals or confirmation candles before considering sell positions. This analysis is shared for educational purposes only — always conduct your own due diligence before trading.🟡 GOLD | Half Target Reached – Momentum Still Active Gold has successfully reached half of our projected target, showing strong respect for our technical levels. The bullish momentum remains intact, and we’re still actively holding to hit the full target zone. Patience and discipline are key — price action continues to confirm our strategy. 📊 Analysis remains valid until structure shifts.