Silver Price Analysis: XAG/USD remains technically oversold, eyes $24

• Daily RSI for XAG/USD stays below 30 on Friday.
• A recovery toward $24 remains in the books.
• Near-term outlook is likely to remain bearish unless price manages to clear $24.

After dropping toward $23 on Thursday, the XAG/USD pair managed to stage a rebound on Friday and was last seen rising 0.88% on a daily basis at $23.39.

Silver technical outlook

On the daily chart, the Relative Strength Index (RSI) indicator stays below 30, suggesting that silver is technically oversold and could extend its correction before the next leg down.

The initial resistance is located at $24.00 (psychological level, the mid point of the descending regression channel coming from early June). A daily close above that level could open the door for additional recovery gains toward $24.50 (upper limit of the regression channel).

Nevertheless, XAG/USD continues to trade well below the 20, 50, 100 and 200-day SMAs and doesn't give any clear signals toward a trend reversal. On the downside, $23 (psychological level, August 12 low) could be seen as the first support before $22.60 (static level) and $22 (psychological level).

Additional levels to watch for