Technical Breakdown on Gold Spot / USD (XAU/USD) | 1H Timeframe1. Key Observations (Volume, Gann & CVD + ADX Focused)
a) Volume Profile Insights:
Value Area High (VAH): 3,327.65
Value Area Low (VAL): 3,287.37
Point of Control (POC): 3,325.89
High-Volume Nodes: 3,325–3,328 zone (significant consolidation & absorption).
Low-Volume Gaps: 3,280–3,290 zone (potential for fast price movement if re-tested).
b) Liquidity Zones:
Stop Clusters: Near 3,340 (previous highs), and below 3,280 (recent swing lows).
Order Absorption Zones: Strong absorption around POC (3,325), indicated by multiple rejections and volume stacking.
c) Volume-Based Swing Highs/Lows:
Swing High: 3,382 (volume spike + reversal).
Swing Low: 3,275 (volume increase on bullish reversal).
Current Range: Consolidation between 3,280–3,328.
d) CVD + ADX Indicator Analysis:
Trend Direction: Range-bound (CVD mixed; recent sharp upward CVD move neutralized by selling at resistance).
ADX Strength:
ADX < 20: Suggests weak trend, confirming range-bound environment.
DI+ ≈ DI-: No dominant directional strength.
CVD Confirmation:
Recent Rising CVD + No breakout above resistance = Hidden supply
Earlier bullish CVD divergence at 3,275 led to minor recovery
2. Support & Resistance Levels
a) Volume-Based Levels:
Support:
VAL: 3,287.37
Swing Low Support: 3,275
Resistance:
VAH: 3,327.65
POC: 3,325.89
Swing High: 3,382
b) Gann-Based Levels:
Recent Gann Swing High: 3,382
Recent Gann Swing Low: 3,275
Key Retracement Zones:
1/2 retracement: 3,328
1/3 retracement: ~3,311
2/3 retracement: ~3,345
3. Chart Patterns & Market Structure
a) Trend:
Range-bound (confirmed by low ADX & choppy CVD)
b) Notable Patterns:
Potential Bullish Flag within a Rising Channel (purple zone)
Channel Support: Near 3,280
Channel Resistance: 3,360–3,390
Retest of POC (3,325.89) with multiple failed attempts to close above = key resistance validation
4. Trade Setup & Risk Management
a) Bullish Entry (If CVD + ADX confirm uptrend):
Entry Zone: 3,287–3,292
Targets:
T1: 3,325
T2: 3,360
Stop-Loss (SL): 3,275 (below recent swing low)
RR: Minimum 1:2
b) Bearish Entry (If CVD + ADX confirm downtrend):
Entry Zone: 3,325–3,328
Target: T1: 3,287
Stop-Loss (SL): 3,340 (above recent rejection zone)
RR: Minimum 1:2
c) Position Sizing:
Risk only 1–2% of capital per trade.
