Gold Spot (XAU/USD) – Technical Analysis Using Volume Profile

1. Key Observations (Volume & Gann Focused)

a) Volume Profile Insights:

POC (Point of Control): $3022.81 – high volume concentration area currently acting as a mid-range pivot.

Value Area High (VAH): Near $3032 – price has respected this zone multiple times as short-term resistance.

Value Area Low (VAL): Near $3012 – the lower boundary of prior trading activity, marking potential support.

b) Gann High-Low Signals:

Confirmed Gann High near $3045 aligned with recent rejection zone.

Recent Gann Low around $3012 – price has shown a bounce here, confirming it as a potential demand zone.

c) Liquidity Zones:

Liquidity Grab at $3040-$3045 – prior highs swept with a quick selloff, indicating institutional stop hunting.

Potential Sell Stops resting below $3012 (Range Low), marked as a key liquidity target if bearish continuation plays out.

d) Volume-Based Swing Highs/Lows:

Swing High at $3035-$3045 (low volume node followed by reversal).

Swing Low at $3020-$3022 near the POC – acting as a high-volume support base.

2. Support & Resistance Levels

a) Key Support:

$3022.81 (POC – key reaction zone).

$3012 (VAL and Gann swing low – confirmed support).

b) Key Resistance:

$3032 (VAH – rejected multiple times).

$3045 (Liquidity sweep and previous Gann swing high).

3. Chart Patterns & Market Structure

a) Trend Direction:

Currently range-bound, but short-term bullish structure forming inside a rising channel off the $3012 low.

b) Pattern Observations:

Range Structure: $3012 to $3045.

Channel Formation: Price is oscillating upward in a defined channel.

Breakout Opportunity: A clean break above $3032 opens space toward $3045 again.

4. Trade Setup & Risk Management

Trade Direction Entry Zone Target 1 (T1) Target 2 (T2) Stop-Loss (SL)
📈 Bullish Entry $3020–$3022 $3032 $3045 $3012
📉 Bearish Entry $3032–$3035 $3020 $3012 $3046
c) Risk Management:

Minimum Risk-Reward Ratio: 1:2

Position Sizing: Risk 1–2% of account equity per trade.

Execute only on confirmation of rejection or break of zone (avoid blind entries).