The chart tells the great war between bulls and bears at the significant area (the Pivot Zone). The patterns of bulls and bears are indicating that bulls are trying very hard to get gold to test yearly high at 1346 while bears also try to defense their borders from bulls attacks.
– Saucer Bottom at 1281-1288 area which forms the base to give bulls the chance to counter attack from last bearish action down from 1346.
– Cup and Handle Pattern is the ultimate weapon for bulls to re-take yearly high at 1346
– MA(200) acting as the defense (support) line to hold any bears counter attacks
– Tower Top Pattern shows bears trying hard to stop any bullish actions
– Evening Star Pattern might signal the end of bulls attacks from 1281
– Last bearish defense (resistance) line at .0618 Fibonacci Retracement to hold any bulls
War Zone ( Pivot Zone) is the border line where bulls and bears are fighting hard to take advantage from the others. If bulls can get through the border line, they will try to take over at the bears last defense line. Meanwhile, bears will try to push bulls back and dampen any bulls chances to take out their last defense.