Silver markets have had an extraordinarily bullish view sessions, reaching towards the $23.50 level. Having said that, the market is likely to pull back because we have reached the stratosphere and are so far ahead of ourselves that the market desperately needs to see a bit of value enter the picture so people can get involved. After all if you are buying silver at this level you are looking to lose money. After all, all one has to do is think back to the Bitcoin market several years ago when it went straight up in the air and people lost an absolute fortune trying to buy Bitcoin close to the $19,000 level. That is essentially what silver is doing right now, although not quite so exaggerated.
Great trading opportunities, don’t wait to take advantage of this pair!
Markets ebb and flow over the longer term, and we will certainly see a pullback sooner or later. The most difficult thing about trading a market that has done this is that you need to be patient enough to place the trade. What I mean by this is that the market may not fire off a tradable signal for several days. If you are not long of silver at this point, your job is to simply wait until it gets cheap enough to buy. You cannot buy the market up here because you may find yourself in a situation where you are waiting for weeks in order to get back to breakeven. Chasing the trade is the greatest way to lose money that I can think of in the markets, so with that in mind I believe that if you are patient enough you should get a longer-term “buy-and-hold” signal.
I believe that the $21 level would be an ideal area to enter this market, but I will take it on a day by day basis as these types of moves can be relatively tricky. Ultimately, this is a market that will eventually get a bit of value thrown into it, and then your job is to pick it up once it happens. Expect a lot of noise, but at this point you cannot buy appear only because we know the traders out there that have been so extraordinarily profitable will be looking to take advantage of booking gains, because the silver contract is huge, and therefore a $2.00 gain would be quite sizable indeed and something that could boost returns for clients.