• Silver edges lower for the second successive day and drops to over a one-week low.
• The technical setup favours bearish traders and supports prospects for further losses.
• Attempted recovery back above the $23.00 round figure is more likely to get sold into.

Silver adds to the previous day's heavy losses and remains under some selling pressure for the second successive day on Friday. The white metal maintains its offered tone through the early European session and drops to over a one-week low, around the $22.75-$22.70 region in the last hour. 

Looking at the broader picture, the overnight sustained break through a one-week-week-old ascending channel and the 100-hour SMA was seen as a fresh trigger for bearish traders. Furthermore, acceptance below the 200-hour SMA, along with bearish oscillators on hourly charts, supports prospects for a further near-term depreciating move for the XAG/USD.

That said, technical indicators on the daily chart - though have been losing positive traction - are still holding in the bullish territory. Hence, any subsequent fall is likely to find decent support near a horizontal resistance breakpoint, around the $22.00 mark. The latter should act as a pivotal point, which if broken should pave the way for deeper losses.

On the flip side, attempted recovery beyond the $23.00 mark (200-hour SMA) could attract fresh sellers near the 100-hour SMA, near the $23.40-$23.45 region. This is followed by the aforementioned ascending trend-channel support breakpoint, around the $23.70 zone, and the $24.00 level. A convincing breakout through the said barriers is needed to negate the negative outlook.

Silver 1-hour chart

Key levels to watch