continue to demonstrate exceptional strength as price has rallied back above the VC PMI Daily Mean of 4,109, confirming that bullish momentum remains intact. The market has successfully rejected the Daily Buy 1 level at 4,042 after briefly testing lower prices near 4,011, creating a classic mean reversion setup.
According to the VC PMI methodology, once price returns above the daily average following an oversold condition, probabilities shift strongly toward testing higher resistance levels.
The next upside objectives are the Daily Sell 1 level at 4,165 and the Weekly Sell 1 level at 4,166, creating a significant resistance cluster. A sustained close above this area would increase the probability of advancing toward the Daily Sell 2 level at 4,232, with the Weekly Sell 2 target at 4,260 representing the next major objective. These levels identify statistically extreme prices where disciplined traders begin scaling out of long positions rather than initiating aggressive new buying.
From a Square of 9 perspective, the market continues to respect geometric price harmonics. Gold has completed an important rotational advance from the recent low near 4,011, placing the current rally into the next resistance phase of the cycle. Should price exceed the Sell 1 resistance zone with expanding volume, the Square of 9 projection supports an extension toward the higher weekly objective near 4,260, where stronger profit-taking is expected.
The current market also aligns with the ongoing seasonal cycle. Late July has historically marked an important transition period as precious metals begin positioning for stronger demand into August and September. This cyclical window frequently produces renewed institutional accumulation after corrective consolidations, reinforcing the current bullish structure.
Momentum indicators further support this outlook. The MACD has reversed sharply from deeply negative territory, confirming improving upside momentum. Rising volume accompanying the recent breakout adds confidence that buyers remain in control despite short-term volatility.
Under the VC PMI methodology, traders should continue using a disciplined scaling approach. Long positions initiated near the Buy levels can progressively reduce exposure into the Sell 1 and Sell 2 objectives while raising protective stops to preserve gains. Chasing strength above statistically overbought levels should be avoided until new mean reversion opportunities develop.
VC PMI Disclosure: The Variable Changing Price Momentum Indicator (VC PMI) is a quantitative, rules-based trading methodology designed to identify statistically significant areas where prices become overbought or oversold. The methodology is based on historical probability and mean reversion principles and does not guarantee future results. All trading involves substantial risk, including the possible loss of principal. Square of 9 cycle analysis and seasonal cycle projections are supplementary analytical tools and should be used alongside prudent risk management and independent judgment. Past performance is not necessarily indicative of future results.
