Silver Rally Tests $39.36 Resistance With 360-Day Cycle in Play

Silver Futures are trading at $39.00 (+2.42%) as of this morning session, having staged a decisive breakout from consolidation. The rally began with a surge of buying pressure as price climbed above the daily VC PMI ($38.43), and quickly accelerated once it cleared the weekly Sell 1 ($38.67) and daily Sell 1 ($38.84) resistance bands.

The breakout candle was accompanied by a sharp increase in volume, a clear indication of institutional accumulation. With momentum now carrying the market into the $39.00–$39.10 zone (Daily Sell 2), silver is poised at a pivotal junction where the next wave of direction will be determined.

VC PMI Framework

The VC PMI levels provide a clear map of equilibrium, buy, and sell zones:

• Daily Range:
  
  
  • Buy 2: $37.76
    
    
  • Buy 1: $38.17
    
    
  • Pivot: $38.43
    
    
  • Sell 1: $38.84 (broken → now support)
    
    
  • Sell 2: $39.10 (active resistance)
    
    
• Weekly Range:
  
  
  • Buy 1: $37.24
    
    
  • Pivot: $38.09
    
    
  • Sell 1: $38.67 (broken → now support)
    
    
  • Sell 2: $39.36 (primary upside target)
    
    

From a probability standpoint, the market is in an extreme bullish zone as it trades above both the daily and weekly sell levels. This suggests the market is extended but also signals momentum-driven price discovery toward higher resistance.

Momentum & Market Energy

• MACD: Still slightly negative (-0.296) but improving; histogram bars are shrinking, a precursor to a bullish crossover.
  
  
• Volume: Strong buying volume on breakout → confirms institutional support.
  
  
• Bias: Bullish above $38.43; caution if momentum stalls at $39.36.
  
  

Silver’s surge is showing early signs of short-term overextension, but given the alignment of higher cycle and price geometry levels, the path remains upward unless $38.84 is lost.

Gann 360-Day Cycle

Silver remains in the orbit of the 360-day cycle low projected into late September 2025. Traditionally, strength into this window can indicate two scenarios:

1. Countertrend Rally: Price tests resistance before rolling into the final leg down, fulfilling the cycle low timing.
   
   
2. Cycle Compression: Price accelerates early, and the low forms ahead of schedule. If silver sustains above $38.67–$38.84, it would strongly suggest the second scenario, implying the cycle has bottomed early and that Q4 2025 could be an extended bullish run.
   
   

This rally therefore is not just technical but potentially transformational in silver’s cycle structure.

Square of 9 & Price Geometry

Projecting forward from the Weekly Buy 1 ($37.24):

• 90° rotation: $38.67 (already broken)
  
  
• 180° rotation: $39.36 (immediate resistance target)
  
  
• 270° rotation: $40.25 (secondary upside if $39.36 breaks)
  
  
• 360° rotation: $41.05 (major cycle completion level)
  
  

These projections line up remarkably with Fibonacci expansions, particularly the $39.75–$40.25 band, reinforcing this as the next high-probability target zone.

Strategic Scenarios

• Bullish Scenario: Sustained trade above $38.84 keeps momentum intact for a push toward $39.36, with extension into $40.25–$41.05 if buying pressure persists.
  
  
• Neutral Scenario: A consolidation around $38.43–$38.84 could reset energy before the next leg up.
  
  
• Bearish Scenario: Failure to hold $38.17 would shift bias toward $37.76–$37.24, re-aligning with the longer-term 360-day cycle low window.
  
  

Narrative Outlook

Silver has entered a high-stakes inflection zone, where the convergence of VC PMI pivots, cycle timing, and Gann/Square of 9 geometry provides a rare clarity of roadmap. The rally has already shifted sentiment, but the test at $39.36 will determine whether silver pauses for consolidation or launches into the $40.25–$41.05 zone, marking an early completion of its cycle low.

A decisive break through $39.36 would confirm that silver is entering a new expansionary phase into Q4 2025, setting the stage for higher volatility and opportunity. Traders should prepare for explosive price behavior at these levels.

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