LONG YANG. Inverse head and shoulders
With the "trade war" continuing until the purported deadline of March 1, we can expect heavy volatility until then. The Chinese New Year is coming up on the fifth of Feb and Xi will want to reach a positive outlook before that time. As basically the entirety of China will go on holiday for 2 weeks, Xi will want the people to be at ease about future economic outlook to bolster spending and the economy in the 2 week period.
I believe Trump, on the other hand, will likely leverage this scenario (as he does) to ask for more or not budge from his current stance. Xi will most likely not oblige Trump's "unreasonable" position. The New Year as well as the inverse head and shoulders pattern point to a new recent high.
I expect Yang to go down slightly to around 56-57 before making the climb to complete the other shoulder then breaking out into the Chinese New Year.
I believe Trump, on the other hand, will likely leverage this scenario (as he does) to ask for more or not budge from his current stance. Xi will most likely not oblige Trump's "unreasonable" position. The New Year as well as the inverse head and shoulders pattern point to a new recent high.
I expect Yang to go down slightly to around 56-57 before making the climb to complete the other shoulder then breaking out into the Chinese New Year.