SILVER PRICE ANALYSIS: The XAG/USD tests the key support of the trend line

• La Plata (XAG/USD) cuts losses about $ 35.80 after reaching an intradic minimum of $ 35.28 on Tuesday.
• The increase of last week to 13 -year maximums driven by safe refuge flows and an adjusted offer now faces a healthy benefit.
• The cash price puts the criticism line of ascending trend and the support of the EMA of 21 days about 35.50 –35.60 $.

La Plata (XAG/USD) invests its course during the American session on Tuesday after spending most of the day descending from a maximum intradic of $ 36.20. At the time of writing, the metal is traded about $ 35.80, slightly above the minimum of the $ 35.28 session, but still falls around 0.65% in the day while traders test the key support of the trend line.

Last week, silver reached new 13 years as investors went to metal for their appeal as a safe refuge. The strong industrial demand and supply adjustment added fuel to the increase. However, the impulse has been cooled since then, with the recent fall reflecting a healthy benefit and reduced liquidity in the market.

From a technical perspective, the daily graphic of La Plata is still constructive but shows early signs of fatigue. Tuesday’s fall led to the XAG/USD to return to its upward trend line support, which has guided the upward trend since mid -April. This line of trend, reinforced by the Exponential Mobile (EMA) average of 21 days about 35.50 –35.60 $, has acted repeatedly as a springboard for new purchases.

A decisive daily closure below this area would increase the risk of a deeper correction, potentially exposing the following key support around 34.50 – an old level of resistance that is now expected to act as a solid soil if the recoil is deepened.

The impulse indicators highlight this fight between buyers and vendors. The Relative Force Index (RSI) has cooled to 56.50, getting out of recent overcompra conditions but still comfortably above the neutral level of 50, suggesting that the broader trend maintains a bullish bias. Meanwhile, the MACD histogram has changed marginally to negative, indicating a weakening of the ascending impulse in the short term. The price action shows repeated long lower wicks in recent candles, stressing that the bulls continue to intervene aggressively in the falls.

If the silver manages to maintain a rebound from the current levels, the rally could recover traction towards $ 36.50, with a possible extension to the psychological barrier of 37.00 $ if the purchase pressure intensifies.