futures continue to trade in a corrective phase following the recent high at 4403.6 and subsequent decline to 3975.7. The market is currently trading near 4018, below both the Daily VC PMI Mean Price of 4038 and the Weekly VC PMI Mean Price of 4289, confirming that short-term momentum remains negative while the longer-term trend continues to consolidate.
The VC PMI identifies extreme levels where probability favors mean reversion. Current Daily Buy 1 support is located at 3945, with Daily Buy 2 at 3887. The recent low of 3975.7 tested the area between the mean and Buy 1 support, generating signs of stabilization. A close above the Daily Mean at 4038 would be the first indication that buyers are regaining control and could trigger a rally toward Daily Sell 1 at 4102 and Daily Sell 2 at 4195.
From a weekly perspective, Buy 1 Weekly support is located at 4175 and Buy 2 Weekly support at 4106. The market’s decline below these levels signals an oversold condition relative to the weekly structure. Historically, prices trading below Weekly Buy 2 create opportunities for accumulation as the probability of reverting back toward the Weekly Mean increases significantly.
Cycle Date Analysis
The June 19 cycle date marked a significant timing window. Markets often experience volatility expansion within several trading days of major cycle turns. The sharp decline into June 24 aligns with the expected cycle weakness phase. The next cycle convergence window is projected into late June and early July, where multiple short-term and intermediate cycles begin to synchronize.
Additionally, the 270-day seasonal cycle and annual 180-day cycle continue to suggest that the current decline is corrective within a larger bullish framework. Long-term cycle analysis remains supportive of higher gold prices into the second half of 2026.
Square of 9 Analysis
Using Square of 9 geometry, the 3975-4000 area represents a major vibration point and support zone. A sustained close above 4038 activates upside targets toward 4102, 4195, and eventually the Weekly Mean at 4289. A break below 3945 would expose the market to the next harmonic support level near 3887.
VC PMI Disclosure
The Variable Changing Price Momentum Indicator (VC PMI) is a proprietary quantitative methodology designed to identify areas of supply and demand using statistical analysis and mean reversion principles. The VC PMI does not guarantee future results and should not be construed as investment advice. Futures, options, and leveraged products involve substantial risk of loss.
Cycle dates, Square of 9 projections, and seasonal studies are analytical tools intended to assist traders in identifying high-probability opportunities and should be used in conjunction with sound risk management and independent judgment.
Leave a comment