Silver Price Analysis: XAG/USD options market turns most bullish in a fortnight
|One-month risk reversal (RR) for silver (XAG/USD), a gauge of calls to puts, jumps to the highest since November 10 by the end of Monday’s North American session, per options data from Reuters.
This contrasts with the white metal’s latest price performance as the commodity quote refreshes a two-week low as sellers attack $24.00 during early Tuesday. In doing so, the bullion prices drop for the fourth consecutive day.
Risk reversals flash the +0.175 level for Monday, per Reuters. The positive reading theoretically indicates call options are drawing a higher premium (option price) than put or bearish bets.
Technically, the 100-DMA level of $24.00 restricts the immediate downside of the metal ahead of an upward sloping trend line from September 29, around $23.90.
Also read: Forex technical analysis and forecast: Majors, equities and commodities
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