Technical analysis by LegionQ8 about Symbol PAXG: Sell recommendation (10/16/2025)

Hello traders, I want share with you my opinion about Gold. The market for Gold has been through a highly complex and volatile phase after breaking down from its prior upward channel. This led to a significant fall into the support zone, followed by a strong recovery that has since pushed the price of XAU above a major ascending trend line. Currently, the asset is undergoing a corrective pull-back towards this broken trend line, setting the stage for what I believe is a critical test. In my mind, the price action is setting up a potential 'bull trap'. I expect that the price will first make a correction to the trend line, find support, and then attempt another rally. I think this rally will be exhaustive and will fail upon reaching the 4280 mark. A confirmed rejection from that peak would signal a major reversal. The subsequent decline should have enough momentum to break the major ascending trend line. Therefore, I have placed my TP for this reversal scenario at 4125. Please share this idea with your friends and click Boost 🚀 Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.Price rose more from the trend line, but I expect that can now drop to my TP.The price rose to the New ATX after which it turned around and fell to the trend line, and even recently broke through it, but recently it also made a retest. Now I expect that the price after the test will continue to fall and reach the support zone where my TP is located.