Quick overview

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Silver (XAG/USD) drifts lower from an intraday high of $36 before reversing direction.  Metal traders test important trendline support, the metal is trading close to $35.8, just above the session low of $35.3, but still down about 0.65 percent for the day.

Traders flocked to silver because of its appeal as a haven last week, pushing the metal to new 13-year highs. Retail interest and strong industrial demand fueling the surge have weakened.. The momentum has since slowed, though, and the most recent decline affirmed decreased market liquidity and prudent profit-taking.

The greyish metals’ daily chart is still positive from a technical standpoint; however, it shows early indications of weariness. Tuesday’s decline drew XAG/USD closer to the rising trendline support towards the upward trend since the middle of April.

Market action revealed this trendline is supported by the 21-day Exponential Moving Average (EMA) $36 frequently serves as a launching pad for new purchases.
Momentum indicators highlight buyer-seller competition. The Relative Strength Index (RSI) has cooled to 56.5, but it is still comfortably above the neutral 50 level, affirming that the trend is still bullish overall.

In contrast, the MACD histogram has marginally shifted to the negative, indicating that the short-term upward momentum is abating. It is evident from recent candles with price action that frequently shows long lower wicks that bulls are still actively intervening during dips.