Silver Price News: XAG/USD justifies technical breakdown, bearish options market signals below $23.00

Silver Price (XAG/USD) stabilizes at the lowest levels in a month after falling in the last two consecutive days, making rounds to $22.70 amid the early hours of Wednesday’s Asian session. In doing so, the Silver bears take a breather after justifying the bearish signals from the technical breakdown, as well as by the options markets. However, the cautious mood ahead of China inflation prods the bright metal’s further downside.

That said, the one-month risk reversal (RR) of the Silver price, a gauge of the spread between the call and put options, reverses the week-start optimism by falling to -0.125 by the end of Tuesday’s North American session.

With this, the weekly RR braces for the second consecutive negative figures, at -0.075 by the press time, which in turn keeps the Silver bears hopeful.

It’s worth noting, however, that a surprise positive from China might allow the XAG/USD to lick its wounds at the multi-day low.

Technical analysis

A daily closing beneath the five-month-old rising support line, now immediate resistance, joins bearish MACD signals to direct the Silver Price toward June’s low of around $22.10.

However, an upward-sloping support line from September 2022, close to $21.85 by the press time, could challenge the XAG/USD bears afterward.

Meanwhile, an upside break of the support-turned-resistance line, around $23.10 at the latest, isn’t an open invitation to the Silver buyers as the 200-DMA surrounding $23.25 also acts as an additional upside filter.

Silver Price: Daily chart

Trend: Further downside expected