- Silver has fallen a bit during the trading session here on Tuesday, as perhaps we've gotten a little overdone to the upside, which I think is pretty obvious at this point.
- But there will be people willing to chase it all the way up here. Just make sure you're not one of them. Yes, it could go higher from here.
- But the reality is that there's only so much momentum that can head into them under normal circumstances.
So it is very important that you don't get too aggressive after a move like this. You have flat out missed the move to the upside and that's fine. It happens all the time. What you look for is a pullback towards support or sideways action. And we will more likely than not see one or the other over the next several sessions.
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So, with that being said, I think you have a market that is long only, but you don't want to be the FOMO trader that comes in and wipes out your account with a huge position seeing dollar signs in your eyes. I do think that silver probably continues to see a lot of upward pressure due to the fact that I think a lot of traders are looking at inflation.
It'll be interesting to see what the CPI says on Wednesday, and that will most certainly have a major influence on what happens next. That being said, I do think that any dip at this point in time will end up being a nice buying opportunity and offer value. Really, it's not until we break down below $33 that I would even entertain the idea of the trend being done. Historically speaking, once you break above the $35 region, Silver has a long history of taking off to the upside in the two other times that we've seen that happen. Regardless, this is a market that you don't short.
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