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

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

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

a) Volume Profile Insights:

Value Area High (VAH): 3,260

Value Area Low (VAL): 3,217

Point of Control (POC): 3,234.27

High-volume nodes: Around 3,234 – confirms consolidation and price acceptance.

Low-volume gaps: Below 3,210 and above 3,275 – potential zones for fast moves.

b) Liquidity Zones:

Stop Clusters Likely At:

Upside: 3,260 (prior swing highs).

Downside: 3,200 & 3,175 (multiple swing lows).

Order Absorption Zones (Delta Spikes):

Near 3,234 and 3,217 – large volume with minimal price movement (potential absorption).

c) Volume-Based Swing Highs/Lows:

Swing High (Volume Spike): 3,275 (bearish rejection)

Swing Low (Volume Spike): 3,200 (bullish absorption)

d) CVD + ADX Indicator Analysis:

Trend Direction: Currently range-bound, with a possible bullish structure forming (wedge channel).

ADX Strength:

ADX < 20: Weak trend, range likely.

CVD Confirmation:

Recent rising CVD + price holding above POC = early demand signs

Watch for breakout above 3,240 for stronger confirmation.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

VAL: 3,217

POC: 3,234

Swing Low: 3,200 (absorption)

Resistance:

VAH: 3,260

Swing High: 3,275 (recent rejection zone)

b) Gann-Based Levels:

Confirmed Gann Swing Low: 3,200

Confirmed Gann Swing High: 3,275

Key Retracements from 3,275 to 3,200:

1/2: 3,237.5

1/3: 3,250

2/3: 3,225

3. Chart Patterns & Market Structure

a) Trend:

Neutral to Bullish Bias – structure forming higher lows within ascending channel.

b) Notable Patterns:

Falling wedge breakout attempt.

Retest of POC zone (3,234) – critical for bullish continuation.

Potential double bottom formation near 3,200.

4. Trade Setup & Risk Management

a) Bullish Entry (If CVD + ADX confirm uptrend):

Entry Zone: 3,234–3,230 (POC support zone)

Targets:

T1: 3,250 (Gann 1/3 retrace & mid-channel)

T2: 3,275 (swing high resistance)

Stop-Loss (SL): 3,215 (below VAL + structure invalidation)

RR: Minimum 1:2

b) Bearish Entry (If breakdown below 3,217 confirmed):

Entry Zone: 3,215–3,217

Target:

T1: 3,200

Stop-Loss (SL): 3,235 (above POC)

RR: Minimum 1:2

c) Position Sizing:

Risk 1–2% of trading capital per trade.