Silver Rally Faces Gann Geometry August Crest Risk: Navigating Potential Price Peaks in August

silver price Rally: geometry and Cycles Point to Potential September Reversal

published: August 21, 2025

The Bounce From $36.96: A Turning Point

Silver experienced a swift recovery following a recent dip to $36.96 on August 19, 2025. This low was not simply a random fluctuation; rather, analysts suggest it represented a critical test of key support levels and a culmination of the preceding downward trend. The price action signaled an exhaustion point, with substantial trading volume accompanying the rebound.

The immediate surge past both the Daily Volume Control Point of Interest (VC PMI) at $37.55 and the Weekly VC PMI at $38.09 signifies a restoring of balance between bullish and bearish forces. Historically, such a dual breakout precedes significant price reversals.

Decoding the Geometry: The Square of 9

Applying the Square of 9-a geometric tool developed by trader W.D. Gann-reveals compelling alignments with these price levels. Rotating the $36.96 pivot point through the Square of 9 yields:

• A 90-degree rotation aligns almost perfectly with the Daily VC PMI at $37.55,marking the initial ignition of bullish momentum.
• A 180-degree rotation closely mirrors the Weekly VC PMI at $38.09, illustrating the convergence of Gann’s geometric principles and probability models.
• A 360-degree rotation projects resistance at approximately $39.18,coinciding with a psychological resistance level at $39.00.

This synchronization suggests that the VC PMI levels aren’t isolated markers but are geometrically validated price points.

Time Cycles: The Hidden Rhythm

Beyond price,time is a crucial dimension. Gann’s cyclical analysis,applied to the August 19 low,identifies potential turning points:

Date	Degree of Rotation	Potential Significance
August 23	45°	Minor test point; rally validation.
August 28-29	90°	High probability swing crest, aligned with monthly cycle.
September 11-12	180°	Mid-cycle inversion; potential acceleration of declines.
September 28	360°	End of cycle rotation; convergence with 360-day cycle trough.

The confluence of these time and price elements suggests a spiraling pattern moving towards a pivotal moment.

Market Psychology: From Short-Covering to Potential Exhaustion

The current rally is largely fueled by short-covering, as traders who bet against silver are forced to buy back the metal to limit losses. This dynamic has emboldened bullish investors.

Though, this dynamic is highly likely to shift as silver approaches the $38.51-$38.67 zone and the $39.18 harmonic level. Late buyers may enter the market just as the cycle suggests an impending reversal.

Did You Know? Gann cycles frequently enough create “trapdoor effects” – rallies toward geometric resistance coincide with cycle peaks, luring in unsuspecting investors before a price drop.

the anticipated crest between August 28 and 29 is poised to capture momentum chasers ahead of a potential September washout. A final decline into September 28 could retest the $36.59-$36.96 range or even explore deeper Fibonacci levels.

Strategic Outlook

• Short-Term (August 21-28): Maintain a bullish bias above $37.18-$37.24, targeting $38.51,$38.67,and $39.18.
• Crest Window (August 28-29): A high probability of reversal exists.A peak within this timeframe suggests an imminent pullback.
• Mid-Term (September 11-12): Potential acceleration into further weakness.
• Endgame (September 28): The convergence of multiple cycles and geometric patterns points to a potential capitulation and a significant buying chance.

Pro Tip: Use trailing stops to protect profits during the rally, and be prepared to adjust your strategy if the market doesn’t behave as projected.

Understanding Gann Theory and Cyclical Analysis

W.D. Gann’s methods, while sometimes considered esoteric, are based on the idea that financial markets are governed by geometric and mathematical relationships. Cyclical analysis examines recurring patterns in market data to predict future price movements.

These techniques are frequently enough used in conjunction with other forms of technical analysis to provide a more thorough view of market dynamics.

For further reading,explore resources on Gann Theory and cyclical analysis.

Frequently Asked Questions about Silver’s Price Movement

• What is a VC PMI? A Volume Control Point of Interest, used to identify potential support and resistance levels based on trading volume.
• What is the Square of 9? A geometric tool used by W.D.Gann to identify potential price and time targets.
• What are Gann cycles? Recurring patterns in market data that Gann believed predicted future price movements.
• Is a September reversal guaranteed? No, market analysis provides probabilities, not certainties. Monitor price action and adjust your strategy accordingly.
• What does short-covering mean? It refers to traders buying back silver to cover short positions, driving up the price.
• How reliable is Gann’s theory? While controversial, Gann’s theories have a dedicated following, and many traders find them valuable when combined with other analysis methods.
• What risks are involved in trading silver? Trading silver, like any financial instrument, carries risk. Past performance is not indicative of future results.

What are your thoughts on the potential for a silver price reversal? Share your perspective in the comments below!

What specific Gann angles are converging in august 2025,and how do they interact to create a potential resistance zone for silver?

Understanding Gann Geometry & Silver Price Predictions

Gann geometry,a technical analysis methodology developed by W.D. Gann, posits that market prices move in predictable patterns based on geometric angles, time cycles, and numerical sequences. Applying these principles to the current silver rally suggests a potential crest, or peak, within August 2025. This isn’t about predicting the future with certainty, but identifying areas of likely resistance and potential reversal based on historical patterns. Traders focused on silver investing and precious metals trading should pay close attention.

Key Gann Angles & August 2025

Several gann angles are converging in August,creating a zone of potential resistance for silver. These aren’t isolated lines; they interact, amplifying their influence.

The 1×1 Angle: Frequently enough considered a primary trendline, the 1×1 angle originating from the 2020 low is currently intersecting with silver’s price trajectory.Historically, breaks above this angle have signaled strong bullish momentum, but sustained tests frequently enough precede corrections.

The 2×1 Angle: This steeper angle, originating from the same 2020 low, represents a more aggressive potential upside target.Though, it also acts as a stronger resistance level.

Square of Nine Cycles: Gann’s Square of Nine is a time cycle indicator.august 2025 falls within a possibly significant time square, historically associated with market turning points. This reinforces the idea of a peak forming.

fibonacci Ratios & Gann: Combining Gann angles with Fibonacci retracements (38.2%, 50%, 61.8%) further refines potential resistance levels. These levels frequently enough align with Gann angles, creating confluence.

Silver’s Recent Performance & Technical Indicators

the silver price has experienced a robust rally throughout 2025, driven by factors including inflation concerns, geopolitical instability, and increased industrial demand. However, recent price action shows signs of slowing momentum.

RSI Divergence: The Relative Strength Index (RSI) is showing bearish divergence – price making higher highs, while RSI makes lower highs. This is a classic warning signal of a potential reversal.

MACD Crossover: A potential bearish crossover on the Moving Average Convergence Divergence (MACD) indicator is also emerging, further supporting the possibility of a pullback.

Volume Analysis: Declining volume on up days and increasing volume on down days suggest weakening buying pressure. This is a critical signal for silver traders.

Support & Resistance Levels: Key support levels to watch on a pullback include $26.50 and $24.00. Resistance currently sits around the $31.00 – $32.00 range, aligning with Gann angle projections.

Navigating the Potential Peak: Trading Strategies

Given the confluence of Gann geometry, technical indicators, and potential time cycles, a cautious approach to silver trading is warranted.

1. Partial Profit Taking: Consider taking partial profits on existing long positions to lock in gains. This reduces risk and provides capital for potential re-entry points.
2. Tighten Stop-Loss Orders: Move stop-loss orders higher to protect profits and limit potential losses if the rally falters.
3. Short-Term Bearish Positions: Experienced traders might consider initiating short-term bearish positions (with appropriate risk management) if price action confirms a breakdown below key support levels.
4. wait for Confirmation: Avoid chasing the market. Wait for clear confirmation of a reversal before making any significant trading decisions. Confirmation coudl include a sustained break below the 1×1 Gann angle and key support levels.
5. Dollar-Cost Averaging (DCA): For long-term silver investors, consider using dollar-cost averaging to mitigate risk and capitalize on potential dips.

Real-World Example: Gann & Silver in 1980

In 1980, silver experienced a dramatic price spike followed by a sharp correction. Applying Gann’s techniques after the fact reveals that the peak in January 1980 occurred near a confluence of Gann angles and a significant time cycle. While past performance isn’t indicative of future results, it demonstrates the potential effectiveness of Gann geometry in identifying turning points. This historical analysis is valuable for understanding silver market analysis.

Benefits of Utilizing Gann Geometry

Objective Analysis: Gann geometry provides a structured, objective framework for analyzing market trends.

Early Warning Signals: Identifying potential resistance and support levels can provide early warning signals of potential reversals.

Improved Risk Management: Understanding potential price peaks allows for more effective risk management strategies.

Enhanced Trading Decisions: Combining Gann geometry with other technical indicators can lead to more informed trading decisions.

Practical Tips for Applying Gann Geometry to Silver

Start with the 2020 Low: This is a crucial anchor point for constructing Gann angles.

Use Multiple Timeframes: Analyze Gann angles on daily, weekly, and monthly charts for a comprehensive view.

Combine with Other Indicators: Don’t rely solely on Gann geometry. Integrate it with RSI, MACD, Fibonacci retracements, and volume analysis.

Practice and patience: Mastering Gann geometry takes