This is mainly a fundamental play which is supported by technical analysis.
From a fundamental perspective, we're seeing that capital account surpluses are going to grow in China, mainly as a result of the shrinking trade surplus between the two nations.
Historically, China has been running large capital account deficits with US, recycling dollars they have received back into US financial assets. It's likely that this trend is beginning to reverse as the world looks to de-dollarize and US aims to shrink trade deficits with the rest of the world.
From a technical perspective, we're seeing very attractive trade setup, in some ways similar setup to the silver run we observed recently. At minimum, I'm expecting a run to previous high of $20.6K.
From a fundamental perspective, we're seeing that capital account surpluses are going to grow in China, mainly as a result of the shrinking trade surplus between the two nations.
Historically, China has been running large capital account deficits with US, recycling dollars they have received back into US financial assets. It's likely that this trend is beginning to reverse as the world looks to de-dollarize and US aims to shrink trade deficits with the rest of the world.
From a technical perspective, we're seeing very attractive trade setup, in some ways similar setup to the silver run we observed recently. At minimum, I'm expecting a run to previous high of $20.6K.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.