China CPI inflation rebounds in Aug, PPI accelerates as energy prices surge
Silver futures remain in a bullish short-term structure, with the 15-minute /SI chart trading near $70.00 after recovering sharply from the recent $67.385 low. Price has reclaimed the Daily VC PMI mean and is beginning to challenge the next resistance band. The key question is whether silver can convert the $70 area into support and accelerate toward the upper VC PMI targets.
VC PMI Technical Structure
The Daily VC PMI mean near $69.70 is the primary equilibrium level. Trading above this mean maintains the immediate bullish bias. The chart identifies Daily Buy 1 at $68.87 and Daily Buy 2 near $67.50, creating the preferred accumulation zone should silver correct.
The broader weekly structure is also constructive. The Weekly VC PMI mean at $67.35 remains major support, followed by Weekly Buy 1 at $64.63 and Weekly Buy 2 at $59.72. As long as silver remains above the $67.35 weekly mean, corrections should be viewed primarily as potential buying opportunities rather than confirmation of a bearish trend.
Upside resistance begins around Daily Sell 1 near $71.17, followed by Daily Sell 2 at $71.90 and Weekly Sell 1 at $72.26. These levels form an important $71.17–$72.26 resistance cluster. A sustained breakout through $72.26 would expose Weekly Sell 2 at $74.98.
Cycle Dates & Square of 9
The chart’s cycle framework places silver in an important late-August decision window. The recovery from $67.385 and return above the daily mean suggest the market may be entering another expansion phase. Under a Square of 9 interpretation, traders should watch the $70–$72 area for price/time confirmation rather than anticipating a reversal solely because resistance has been reached. A breakout above the resistance cluster would strengthen the case for an acceleration toward $75.
Fundamentals
Fundamentals remain supportive but potentially volatile. Silver rose about 1.8% Thursday to roughly $69.35, while the U.S. dollar weakened. Markets are focused on Fed Chair Kevin Warsh’s Jackson Hole speech for clues about monetary policy. July PCE inflation remained elevated at 3.7% year-over-year, creating uncertainty over future rates.
Silver also continues to benefit from strength across the precious-metals complex and longer-term concerns surrounding the dollar and monetary policy. However, changing rate expectations could produce sharp corrections.
Trading Outlook
The highest-probability VC PMI strategy remains buying corrections while price holds above the daily and weekly means. The preferred retracement area is $68.87–$67.50. Above $71.17, targets become $71.90, $72.26 and $74.98. A decisive break below $67.35 would materially weaken the bullish setup.
Disclosure: This analysis is educational and informational only and does not constitute investment advice or a recommendation to buy or sell futures, options, or securities. Futures trading involves substantial risk of loss. VC PMI, cycle analysis, and Square of 9 levels are probabilistic tools and do not guarantee future performance.
