Silver Futures Breakout: Trading the $40 Pivot with Gann Cycles, VC PMI Precision

Silver futures closed at $40.72, successfully breaking above the psychologically and technically critical $40.00 level. This breakout comes at a unique confluence of both the short-term 30-day Gann cycle crest and the long-term 360-day master cycle, a powerful time/price alignment that historically marks high-probability inflection points in market structure.

The trend remains bullish, supported by rising volume and open interest, confirming that new speculative and institutional money is flowing into the silver market rather than simply short covering.

Trading Directives

Buy Zones (Mean Reversion Long Entries)

• Buy 2: $39.00
  This is the strongest support level, harmonically aligned with the Square of 9 matrix. It represents a high-probability re-entry zone if sharp profit-taking occurs.
  Directive: Place resting bids here, with protective stops below $38.50.
  
  
• Buy 1: $39.75
  The first retracement level and immediate support below current prices. It is ideal for scaling into long positions if silver retests its breakout base.
  Directive: Initiate or add to longs here; manage risk under $38.80.
  
  

Neutral Zone (Balance Point)

• Mean: $40.50
  This represents the equilibrium of value in the current market. Holding above this mean keeps bullish control intact, while a break below warns of short-term corrective action.
  Directive: Maintain long positions above the mean; flatten if silver closes below $40.50.
  
  

Sell Zones (Profit-Taking / Counter-Trend Shorts)

• Sell 1: $41.50
  The first resistance aligned with a Square of 9 rotation, offering a high-probability mean-reversion zone.
  Directive: Scale out of 25–50% of longs here; aggressive traders may short with stops above $42.00.
  
  
• Sell 2: $42.50
  Major resistance overlapping with Square of 9 harmonic at $42.22. This is a strong profit-taking zone if silver accelerates.
  Directive: Exit the majority of longs; avoid chasing prices higher.

Time Cycle Guidance

• 30-Day Cycle: Projected peak into early September (Aug 28 – Sep 5). Monitor for exhaustion signals and potential retracement.
  
  
• 360-Day Cycle: The long-term turning point window is unfolding now. The breakout suggests the beginning of a new long-term bullish phase, possibly extending into late 2025.

Strategic Summary

• Primary Bias: Bullish as long as price holds above $39.75.
  
  
• Trading Plan: Buy pullbacks into $39.75–$39.00 with stops under $38.50. Take profits at $41.50 → $42.50. Above $42.50, Square of 9 projects higher targets at $43.75 and $45.00.
  
  
• Risk Trigger: A daily close below $38.80 negates bullish bias and signals deeper retracement.

***

Coach’s Note: You are trading in alignment with both price and time — the strongest edge you can have. Respect the pivots, monitor the cycles, and execute systematically. Discipline and patience will allow you to capture the unfolding move with precision.

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.