In the intricate world of commodity trading, few assets capture the imagination quite like silver. Currently, silver is trading at a delicate juncture, positioned at $38.02. This price point intriguingly sits just shy of the Weekly VC PMI (Volume Confirmed Price Momentum Indicator) at $38.09, a hallmark of its recent erratic journey to a high of $38.78 followed by a discernible pullback. At this juncture, the price seems to be coalescing around an equilibrium, hinting at an imminent high-probability breakout. This sentiment is further bolstered by the harmonic alignment of both daily and weekly VC PMI frameworks, highlighting the potential for a pivotal market turn.
Silver is no stranger to volatility, yet its current phase of consolidation at $38.02, hovering around the Weekly VC PMI of $38.09, signals a market on the cusp of a significant move. This comes after its climb to $38.78, a rally marked by its aggressive volatility, only to retrace its steps in a subsequent pullback. The market now appears to be in a state of compression, a precursor to a potential breakout. Such patterns often occur around key equilibrium points, suggesting that silver is teetering at the edge of a notable price shift, as underscored by the alignment of predictive measures in the VC PMI frameworks.
Delving deeper into the analytical toolbox, we encounter the methodologies of the great W.D. Gann, particularly his 360-day cycle. This cycle is landmarked for September 28, 2024, a significant pivot in the long-term narrative of silver’s trading behavior. Gann’s cycle divides into quadrants of 90°, marking quarter cycles, and progressing through 180° and 270°, culminating in a full 360° rotation. These segments mark distinct phases within the cycle: a quarter cycle in late December 2024, signifying a minor market uptick; a half cycle by late March 2025, indicating a mid-cycle peak leading to corrective pressures; and a three-quarter cycle in late June 2025, aligning with a secondary low during the June advance. The cycle completes its full rotation on September 28, 2025, entering a critical phase approximately six weeks prior, which is earmarked as a major completion window. This imminent period, particularly the current August-September timeframe, is identified as a “time cluster” – a statistical hotbed for price pivots, suggesting a brewing directional storm for silver prices.
Taking another leaf from Gann’s extensive playbook, the Gann Square of 9 offers a unique perspective on price projections. Beginning from the nadir of $37.515 on August 12, 2025, the Square of 9’s spiral ascendancy brings into focus specific price targets. A 360° rotation precisely hits the $38.78 mark, aligning with the recent high in a testament to the method’s accuracy. The next levels of interest, marked by 45° and 90° increments, are $39.05 and $39.32, respectively, acting as harmonic resistance zones. On the downside, a 180° rotation from the low points to a risk level at $36.78, should the equilibrium falter.
Synthesizing the insights from VC PMI, Gann Cycles, and the Square of 9 unravels a unified narrative. As we approach the final 45° rotation of the 360-day cycle leading to September 28, 2025, silver finds itself at a high-probability pivot window. Its recent reactions to the Square of 9 harmonic points and its compression near the $38.00-$38.09 range suggest a buildup of energy for an imminent breakout towards the $39.05-$39.32 band before the cycle’s completion.
Silver futures, therefore, stand at a critical compression phase, a crucible moment where the confluence of time and price harmonics prepare to forge the market’s next direction. The fulcrum of this potential pivot is the weekly pivot at $38.09, around which two paths diverge: a bullish trajectory that could propel prices towards $38.67, then $38.92, and possibly stretch to $39.32 by the cycle’s peak, and a bearish path where failing to hold above the $37.98-$37.80 range could see prices retract to $37.24, and, if the pressure persists, descend further in a Square of 9 rotation towards $36.78.
The prevailing evidence leans towards a bullish breakout, albeit within a timeline peppered with volatility as projected in the late August-September window. This is emblematic of the “pre-launch compression window” delineated by Gann, a period where both time and price are poised to complete their cyclical dance. However, as with all trading endeavours, especially those involving derivatives, financial instruments, and precious metals, the journey is fraught with risk and unpredictability. Market participants are reminded that past performance is not always indicative of future results, underscoring the necessity for diligence, vigilance, and a keen grasp of the underlying risk before embarking on trades in these realms.
