Silver Price Forecast: Bullish outlook remains in play near $50.00

• Silver price climbs to around $49.95 in Friday's early European session. 
• Positive view of the Silver prevails above the 100-day EMA, but the overbought RSI condition might cap its upside. 
• The immediate resistance level emerges in the $50.90-$51.00 region; the first support level to watch is $47.74.

Silver price (XAG/USD) jumps to near $49.95 during the early European session on Friday. The white metal attracts some buyers amid the ongoing US government shutdown, uncertainty and the prospect of a US interest rate cut. 

"Gold and silver may need to consolidate further, but the primary drivers of the rally, reserve diversification and large, growing global sovereign debt, remain entirely valid and keep the bullish outlook intact," said Tai Wong, an independent metals trader.

Technically, the constructive outlook of Silver remains in place as the white metal is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. Nonetheless, the 14-day Relative Strength Index (RSI) stands above the midline near 79.75, indicating the overbought RSI condition. This suggests that further consolidation or a temporary sell-off cannot be ruled out before positioning for any near-term silver uptick. 

The key upside barrier emerges in the $50.90-$51.00 zone, representing the upper boundary of the Bollinger Band and a psychological level. A decisive break above this level could pick up more momentum and aim for the all-time high of $51.24. Further north, the next resistance level is seen at $52.00, a round figure. 

In the bearish case, the low of October 8 at $47.74 acts as an initial support level for the white metal. A breach of this level could drag the Silver toward $45.91, the low of October 2. The additional downside filter to watch is $43.78, the low of September 25. 

Silver (XAG/USD) daily chart