Gold can dip to USD 1415; Silver to USD 26.80

Gold is forming a wave extension on the downside. In its previous fall, gold has formed a five-wave decline and has retraced the same till the 50% retracement mark. It has also reached a crucial resistance zone of the 40-daily exponential moving average (DEMA) and the daily upper Bollinger Band. Thus, from here, gold has a high probability to resume with the larger downtrend. The short-term and the medium-term trends for gold are down. The reversal can be placed above the medium-term falling trendline, ie $1,643. On the downside, the previous low of $1,527 will be the key level to watch out for. Once that is broken, gold can target $1,415.

Trend	Trend Reversal	Supports	Resistances	Target
Down	$1,643.00	$1,554/1,500	$1,620/1,634	$1,527/$1,415

Silver: A bearish triangle
Weekly close: $28.670

As can be seen from the chart, silver has retraced 61.8% of the previous fall and has fallen sharply from there. On the way down, it has broken the previous low of $29.23. The level is now acting as a strong resistance. Since the last couple of weeks, silver is trading below this crucial resistance and has taken a form of a bearish triangular pattern. The equality target on the downside is at $27.55, below that the white metal can test a falling trendline, ie $26.80. The reversal for this bearish view can be maintained above the 40-DEMA ($29.57).

Trend	Trend Reversal	Supports	Resistances	Target
Down	$29.57	$27.94/27.00	$29.17/29.45	$27.55/$26.30

( http://www.moneycontrol.com/news/brokerage-recos-commodities/gold-can-dip-to-usd-1415-silver-to-usd-2680-sharekhan_842786.html)