- Silver is slightly lower on Friday, holding above key support levels.
- The technical outlook is bullish, but upside appears limited while below $21.50.
- A break below $20.85 is likely to increase bearish pressure.
Silver falls on the last day of the week. It bottomed at $21.14 during the US session before quickly bouncing back above $21.30 as the correction from the weekly peak around $21.70 faded. Aiming for a weekly gain of 2%.
Technically, XAG/USD managed to stay above the 210-day simple moving average (SMA) of 20.90. The diagram seems to be supporting growth at the moment. The area around $20.85/$20.90 has become a critical support to maintain this bullish perspective.
A drop below $20.85 could trigger further losses and reveal the mid-November intraday low of $20.56. $20.25 is seen below the next target. Attention is then set at the $19.95/$20.00 border.
A convincing break above $21.50 should open the door to further gains. Another area of resistance is in the $21.65/70 area followed by the $22.00 mark. A five-month high awaits at $22.26.
XAG/USD is set to post a weekly gain of 2% and technical indicators favor up. The price faces resistance at the 55-week SMA at $21.90. A weekly close above could clear the way to the 100-week SMA at $23.45.