futures continue to demonstrate classic VC PMI mean-reversion behavior within a well-defined price and time structure. After peaking near 4512, price rotated lower into the BUY-1 Daily zone at 4421, briefly probing toward BUY-2 Daily at 4381, before stabilizing and reverting back toward the VC PMI Daily Mean at 4455. This reaction confirms the probabilistic framework of the VC PMI model, where price extremes statistically favor reversion back toward the mean before any sustained trend continuation.
From a time-cycle perspective, the recent high aligns with a completed short-term cycle crest, followed by a corrective phase into mid-week. This downswing respected both price geometry and time symmetry, suggesting the decline was corrective rather than impulsive. The rebound into Friday coincides with a minor cycle turn window, reinforcing the notion that time is now supporting stabilization and potential continuation higher rather than immediate breakdown.
The Square of 9 geometry adds further clarity. The 4512 high sits near a harmonic rotational resistance zone, while the BUY-1 and BUY-2 levels align with lower Square-of-9 angles, historically associated with trend resumption zones during bull phases. Importantly, price never violated the broader weekly VC PMI structure, keeping the dominant bullish fractal intact. The VC PMI Weekly Mean near 4398 acted as structural support, confirming that the larger trend remains constructive.
As price pushes back toward SELL-1 Daily at 4495, traders should expect responsive selling and consolidation. A clean acceptance above SELL-1 increases the probability of a measured move toward SELL-2 Daily at 4529, which also corresponds with a higher Square-of-9 resistance angle. Failure at SELL-1 would be consistent with short-term rotational trading rather than trend failure, favoring another mean-reversion cycle.
Strategically, this remains a trader’s market governed by rotational probabilities, not emotional momentum. Long entries near VC PMI Buy zones continue to offer asymmetric reward-to-risk, while profit-taking near Sell zones remains prudent. A sustained close above SELL-2 would signal a higher-degree breakout and a new price-time expansion phase.
Bottom Line
Gold remains in a bull-market structure, with VC PMI, time cycles, and Square of 9 geometry all confirming controlled, rotational strength, not exhaustion.
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Disclosure: This analysis is for educational purposes only and does not constitute financial advice. Futures trading involves substantial risk and may not be suitable for all traders. Past performance is not indicative of future results.
