Silver Price Analysis: XAG/USD capped while below $21.50, bullish bias above $20.85

• Silver modestly falls on Friday, holding above key support levels.
• The technical picture is bullish, but the upside looks limited as long as it is below $21.50.
• The break below $20.85 is likely to add to the bearish pressure.

the silver falls on the last day of the week. He bottomed during the American session at $21.14 and then quickly rallied above $21.30 as the correction from the 1-week high around $21.70 eased. It is heading towards a weekly gain of 2%.

From a technical point of view, the XAG/USD has managed to stay above the 210-day Simple Moving Average (SMA) which stands at $20.90. The chart seems to favor the upside at the moment. The $20.85/$20.90 area has become critical support for that bullish outlook to hold.

A dip below $20.85 could trigger further losses and expose the mid-November intraday low at $20.56. Below that, the next target stands at $20.25. Attention then turns to the $19.95/$20.00 barrier.

A convincing break above $21.50 should open the doors for more gains. The next resistance zone is at the $21.65/$70 region, followed by the $22.00 signal. The five-month high awaits at $22.26.

XAG/USD is about to post a 2% weekly gain and technical indicators favor gains. The price is facing 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.

Silver daily chart

technical levels