Silver futures closed the overnight session near $42.72, holding onto recent gains after testing a high of $43.04. The price action highlights strong bullish momentum above both the daily and weekly mean levels, while also signaling caution as the market trades within overbought resistance zones defined by the VC PMI framework.
At the heart of the current structure, the Daily VC PMI is $41.94, with Buy levels at $41.54 and $40.94, and Sell levels at $42.54 and $42.94. On the weekly timeframe, the VC PMI rests lower at $41.47, with Buy zones at $41.08 and $39.74, and Sell zones at $42.37 and $43.20. With the market comfortably above both the daily and weekly means, the prevailing bias remains bullish. However, trading within the Sell 1–Sell 2 band ($42.54–$42.94) implies a high-probability mean reversion could soon unfold.
From a technical perspective, the convergence of daily and weekly resistance zones between $42.50 and $43.20 creates a critical band of supply. The Fibonacci retracement grid strengthens this area further, reinforcing the likelihood of sellers stepping in. Should sustain a breakout above $43.20 on a closing basis, upside momentum could extend into higher harmonic levels, potentially unlocking a continuation wave.
Cycle Analysis: The 30-day Gann cycle, anchored from September 28, 2024, has consistently marked short-term turning points. Projected cycle dates include:
- October 28, 2024 – first 30-day rotation (confirmed pivot low).
- November 27, 2024, December 27, 2024, January 26, 2025, February 25, 2025 – each aligned with consolidation or reversal windows.
- Current cycle window: September 12–13, 2025, marking the 11th rotation from the anchor.
- Next key 30-day cycle date: October 12, 2025.
The broader 360-day Gann cycle also dominates the structural trend. From the same anchor:
- September 28, 2025 – full 360-day rotation, marking a major cyclical completion.
- This aligns closely with the current resistance test, increasing the probability of a time-price confluence event.
The Square of 9 spiral chart reinforces this picture by geometrically aligning the $42.72 pivot with key VC PMI levels. Resistance levels at $42.54 and $42.94 fall into harmonic resonance with the current anchor, while support levels at $41.94 and $41.54 create a reversion corridor. This mathematical structure suggests the market is at a time-price equilibrium point, where volatility expansion is likely.
Conclusion: Silver is testing a critical resistance zone while maintaining a bullish trend above $41.90. For short-term traders, this is a high-probability area to take profits or tighten stops, anticipating potential reversion toward the $41.50–$41.90 band. For longer-term participants, sustained closes above $43.20 would confirm breakout strength and project higher upside targets into Q4 2025. The balance between immediate profit-taking and long-term bullish confirmation makes this a pivotal moment in silver’s trajectory.
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TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.