Technical Breakdown on Gold Spot / USD (XAU/USD) | 1H Timeframe

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Technical Breakdown on Gold Spot (XAU/USD) – 1H Timeframe Using Volume Profile, Gann, and CVD + ADX

1. Key Observations (Volume, Gann & CVD + ADX Focused)

a) Volume Profile Insights:

Value Area High (VAH): 3,240.00

Value Area Low (VAL): 3,180.00

Point of Control (POC): 3,235.17

High-Volume Nodes: Around 3,220–3,240, suggesting heavy trading and possible resistance.

Low-Volume Gaps: Near 3,100–3,120, hinting at inefficient price action and potential magnet zones.

b) Liquidity Zones:

Potential Stop Clusters:

Above 3,240 (recent highs)

Below 3,100 (recent swing lows)

Order Absorption Zones:

3,180–3,200 showed high CVD divergence, signaling passive buy support.

c) Volume-Based Swing Highs/Lows:

Swing Highs with Volume Spike: 3,240.00

Swing Lows with Volume Spike: 3,100.00 (confirming reversal support)

d) CVD + ADX Indicator Analysis:

Trend Direction: Currently range-bound, with attempts at both upside and downside breakouts.

ADX Strength:

ADX < 20: Weak trend – indecisive market phase.

CVD Confirmation:

Previous CVD downtrend aligned with price drop → Strong supply

Latest CVD slight uptick, price holding = potential demand returning, but not yet confirmed.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

VAL: 3,180

Recent swing low: 3,100 (with absorption)

Resistance:

VAH: 3,240

POC: 3,235

Channel top (3,200–3,220 zone)

b) Gann-Based Levels:

Swing High (Gann): 3,240

Swing Low (Gann): 3,100

Retracements:

1/2 Level: 3,170

2/3 Level: 3,180–3,190 → aligns with VAL

3. Chart Patterns & Market Structure

a) Trend: Range-bound (confirmed by weak ADX and opposing CVD moves)
b) Notable Patterns:

Falling Wedge in play, bullish breakout potential above 3,160

Parallel Channels diverging: one bullish correctional channel, one bearish continuation

Breakout Attempt: Minor bullish breakout from micro-channel underway (watch volume follow-through)

4. Trade Setup & Risk Management

a) Bullish Entry (pending CVD confirmation):

Entry Zone: 3,140–3,150 (on breakout retest)

Targets:

T1: 3,200

T2: 3,235 (POC)

Stop-Loss (SL): 3,100

RR: ~1:2 minimum

b) Bearish Entry (if rejection at POC/VAH):

Entry Zone: 3,230–3,240

Target:

T1: 3,180

Stop-Loss (SL): 3,260

RR: ~1:2 minimum

c) Position Sizing:

Risk only 1–2% of total capital per trade

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