Thank you for your question and my apologies for rather late reply, but hope it will still serve its purpose.
Regarding the high interest rate, it makes it harder for smaller companies being able to borrow for expansions and larger portion of their income is spent servicing the interest payment which becomes a drag. In contrast to larger corporation who are well resourced and have more options to finance borrowing requirement at relatively advantageous terms.
The other point about past performance not necessarily being a guide for future performance – I find this debateable. It is accepted that it is almost impossible to predict exact price path of any instruments into future. So in that respect no one can actually predict where price will go.
Several forms of technical analysis can assist us in anticipating where the particular price cycle might end. For example by applying Fibonacci price projection, extensions or retracement in conjunction with trendlines, trend channels and some indicators such as momentum oscillators a potential zone of reversal or retracement can be identified and price action such as reversal or capitulation candle, continuation or exhaustion gaps etc one can narrow down the possible price zone where price might make a reversal or resume a trend.
So in that respect whilst not being able to forecast exact price path, we could get close to anticipating likely outcome. Application of price patterns and Elliottwave and some fundamental analysis all can help to essentially anticipate future price direction and possible extent of the move (call in predicting) at several degree of time.
Since it is not possible to be 100% accurate and price action evolves so what is anticipated might not develop, one has to use some sort of money management suitable for your trading style and risk tolerance.
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Pound Sterling’s Prospects – Seeing Through The Brexit Fog
Reposted the main chart on Tradingview for ease of tracking future price action, Chart Link - www.tradingview.com/.../C2He0lRg-POUND-STERLING-S-PROSPECTS-SEEING-THROUGH-THE-BREXIT-FOG/
What's The Prospect For The "Equity Market" For 2016/2017?
Thank you for your question and my apologies for rather late reply, but hope it will still serve its purpose.
Regarding the high interest rate, it makes it harder for smaller companies being able to borrow for expansions and larger portion of their income is spent servicing the interest payment which becomes a drag. In contrast to larger corporation who are well resourced and have more options to finance borrowing requirement at relatively advantageous terms.
The other point about past performance not necessarily being a guide for future performance – I find this debateable. It is accepted that it is almost impossible to predict exact price path of any instruments into future. So in that respect no one can actually predict where price will go.
Several forms of technical analysis can assist us in anticipating where the particular price cycle might end. For example by applying Fibonacci price projection, extensions or retracement in conjunction with trendlines, trend channels and some indicators such as momentum oscillators a potential zone of reversal or retracement can be identified and price action such as reversal or capitulation candle, continuation or exhaustion gaps etc one can narrow down the possible price zone where price might make a reversal or resume a trend.
So in that respect whilst not being able to forecast exact price path, we could get close to anticipating likely outcome. Application of price patterns and Elliottwave and some fundamental analysis all can help to essentially anticipate future price direction and possible extent of the move (call in predicting) at several degree of time.
Since it is not possible to be 100% accurate and price action evolves so what is anticipated might not develop, one has to use some sort of money management suitable for your trading style and risk tolerance.
Pound Sterling’s Prospects – Seeing Through The Brexit Fog
You are welcome.
Pound Sterling’s Prospects – Seeing Through The Brexit Fog
Thank you for your appreciation.
Pound Sterling’s Prospects – Seeing Through The Brexit Fog
Thank you for your comment. I can assure you there is no connection of any kind to him or his appraoch.