Quick overview

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The bullion asset is currently experiencing a brief corrective phase within a broader, structurally bullish framework.

The sudden sell-off from the resistance zone between 4400 and 4420 suggests a cycle-driven response rather than a breakdown of the long-term trend. According to the VC PMI, the price has quickly returned to its daily average and Buy-1 zone after an overextended bullish impulse. This is a typical reversion pattern that occurs after a momentum climax.

 

The precious metal maintained a support level close to the 20-day average. An attempt at a one-day bullish reversal on Friday reached a high of $4,402 before encountering significant resistance close to the 10-day average. Sellers became more aggressive in the vicinity of the 10-day line for the second time in three days. As resistance, it shows persistent selling pressure and validation of a previous support line.

The previous test of the 50-day resistance was a potentially bearish inverted hammer. Strong support around the 20-day line, at least thus far, counteracts short-term bearish behavior.

The 15-minute structure shows rejection near a sq.-of-9 harmonic resistance that coincides with a cycle crest window and aligns with the 4400 level. When weak hands exit and leverage resets, this time/price convergence often results in rapid liquidation. The price immediately enters a mean-reversion demand zone when it drops into the 4342–4350 range, where the outlook shifts from momentum continuation to stabilization.

This view is supported by cycle analysis. Within a larger weekly expansion phase, there is a minor 3–5 day corrective cycle that matches the current downswing. Importantly, there has not yet been a significant intermediate or quarterly cycle low, indicating that this move is corrective rather than impulsively bearish. The main trend remains intact as long as the price respects the Buy-1 support and the VC PMI daily mean. From the most recent breakout point, the pullback retreats into a 90-degree rotational support level, a typical area where markets pause, consolidate, or reverse. Currently, the price is acting exactly as expected for a first corrective move, but failure to hold this rotational level could lead to a deeper cycle shift toward the next harmonic support.