- XAG / USD has reversed its direction after falling to a monthly low on Thursday.
- A daily close above the 100-day SMA could open the door for additional gains.
- The $ 23 level is the critical technical support for silver.
After suffering heavy losses on Wednesday, XAG / USD extended its decline on Thursday and hit its lowest level in a month at $ 22.56. However, silver prices managed to close the day above the critical $ 23 level and staged a decisive rebound on Friday. At the time of writing, the XAG / USD was up 1.46% on the day at $ 23.59.
Silver technical outlook
On the daily chart, the RSI appears to have turned higher after falling to 40 points. However, the fact that the RSI remains below 50 suggests that Friday’s rally is a technical correction from the last drop.
However, the XAG / USD is currently above the 100-day SMA, which is currently at $ 23.50, and a daily close above that key level could attract more buyers. On the upside, initial resistance is at $ 24.25 (20-day SMA), ahead of $ 25 (psychological level) and $ 25.25 (50-day SMA).
On the other hand, supports are at $ 23.50 (100-day SMA) and $ 23 (psychological level / 38.2% Fibonacci retracement of the March-August uptrend). With a daily close below $ 23, the outlook could turn bearish.
Silver daily chart
Credits: Forex Street
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