Canopy Growth stock tumbles after announcing $200 million share sale plan
Gold futures are trading at $3,495.5 after briefly touching a new high at $3,500, a level that aligns with a powerful time/price convergence. This level not only represents the VC PMI Sell 2 Daily resistance, but it also coincides with the maturing phase of the 30-day Gann cycle, while harmonizing with the broader 360-day cycle arc that projects long-term turning points. The market has staged a sharp rally from the weekly low of $3,362.8, surging through multiple pivot levels. While short-term momentum is bullish, the overlapping cycle structures suggest caution as the probability of mean reversion rises sharply.
On the daily model, Sell 1 at $3,488 and Sell 2 at $3,500 have now been tested. This places Gold within the high-probability mean reversion zone where the VC PMI framework indicates a 70–90% chance of retracement. Downside targets are at the daily mean ($3,469) and Buy 1 at $3,452, with deeper reversion possible to Buy 2 at $3,429.
VC PMI Weekly Framework
The weekly model confirms the overbought condition. Gold has exceeded Sell 1 at $3,444 and Sell 2 at $3,468, which positions the market in an extreme weekly resistance zone. Historically, such conditions precede corrections back toward the weekly mean ($3,398).
Gann Time Cycles
The 30-day Gann cycle, often associated with short-term swings, projected a pivot window into late August/early September. The rally into $3,500 has aligned almost exactly with this crest, signaling a probable turning point. At the same time, the 360-day Gann cycle—a dominant long-term rhythm—suggests the current move is testing a broader harmonic resistance, amplifying the odds of a reversal or extended consolidation phase.
Square of 9 Harmonics
The Square of 9 further reinforces this confluence. Using $3,495 as a pivot, key harmonic projections cluster around $3,500 and $3,488, marking them as natural resistance points. This harmonic alignment strengthens the case that $3,500 is not only a psychological barrier but also a mathematically significant turning level.
Trading Implications
The resistance/profit-taking zone remains $3,488–$3,500. If price fails to sustain above this band, mean reversion toward $3,469–$3,452 is likely. A confirmed break under $3,429 would extend the retracement toward the weekly mean at $3,398.
In short, Gold has reached a triple confluence of VC PMI resistance, Gann cycles, and Square of 9 harmonics. The market remains short-term bullish but overextended, making this a textbook setup for a high-probability mean reversion trade.
***
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.