Silver Price (XAG/USD) struggles to extend the two-day uptrend near $24.70-75 during early Tuesday in Asia. In doing so, the bright metal jostles with bullish options market signals and the firmer US Dollar, as well as the technical barrier, amid sluggish trading hours.
That said, the one-month risk reversal (RR) of the Silver price, a gauge of the spread between the call and put options, rose in the last two consecutive days and marked the four-week uptrend to keep the XAG/USD buyers hopeful as the metal rose on Friday and Monday.
With this, the daily RR rose 0.035 by the end of Monday’s North American trading session after posting the three-week upward trajectory with the last week’s RR print of 0.130.
Technical analysis
While the options market favors XAG/USD bulls, technical details challenge the Silver buyers.
That said, a fortnight-old descending resistance line challenge the Silver bulls near $24.80, a break of which could test a downward-sloping trend line from July 20, close to $25.05 by the press time.
Following that, the previous monthly high of around $25.30 will act as the final defense of the XAG/USD bears.
On the flip side, the 21-DMA restricts the immediate downside of the Silver price near $24.20.
However, the XAG/USD bears’ major attention will be on the five-week-old support line, close to $23.40 by the press time, to retake control.
It’s worth observing that the upbeat RSI (14) line, not overbought, keeps the XAG/USD buyers as they approach the key upside hurdles.
Silver Price: Daily chart
Trend: Further upside expected
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