Where is the ground? (2011-05-06 Gold and Silver analysis)

Hang Seng Index wasn't moving a lot yesterday. Would it be able to recover its position above the up-trend line on weekly chart?

After speculators like Soros started to sell Gold and Silver, both of these items slumped these few days. Gold dropped from 1576 back to around 1500, while Silver plunged to as low as 38. We might wonder: where is the ground? Let's take a look.

Daily chart of Gold (XAU):

There were four consecutive big black candles, following the record high at 1576. The green line is a medium-term uptrend line, which can provide support to Gold.

Furthermore, I have drawn a fibonacci retracement using the low and high in 2011. The price of gold just broke 23.6% level, and was heading down to the next level.

Though 1,500 could possibly be a strong psychological support, we couldn't find technical support there.

Instead, the green uptrend line should be a strong one to stop the price from further falling below 1470. Indeed, the level of around 1470 is also 38.2% fibs level. We can expect strong buying-force here.

Daily chart of Silver (XAG):

The chart of Silver looks simpler. I have identified three possible uptrend lines, shown in red, green and purple.

Silver price broke the red short-term uptrend line two days ago, and was supported by the green line.

Level of 38 appeared to be quite a strong one; but in fact, the trend line is not as valid as the others as we can see there wasn't much resistance/support in Jan-Feb 2011. I doubt the strength of this line.

Purple one would probably be the bottom line. This should be an extremely strong one which provides support at around 33.