In our first forecast for the FTSE100 for 2021 we have indicated the lowest risk entry points for 2 of the 3 scenarios which we believe the FTSE100 may follow.
Scenario 1 (the gold dotted line) has a high probability long entry zone between 6650 and 6700. However we do believe there is downside risk towards a stronger trend support line and this would be the first high probability (and low risk) entry point for scenario 2 (and also scenario 3 if it plays out).
Providing the long entry zone for scenario 1 is hit we then see a short opportunity (and potentially a market top) at 7000 to 7100. However, even if both of these zones are hit both scenario 2 and scenario 3 are still in play.
Scenario 1 will be cancelled if upwards movement in the FTSE100 continues without a retracement to the long entry zone and scenario 2 and 3 will then become more likely.
Scenario 2 (the purple dotted line) is of particular interest and any support or upward momentum around 6800 (once again) in February would give strong support to further gains in the FTSE before the predicted plummet.
If you value our analysis please consider making a donation. This will help keep our analysis free and available to educate all!
Please Donate to help keep our analysis FREE
As always our posts are not investment advice. If you wish to trade or invest based on our analysis you should do so with great caution and consult your financial adviser. Remember never to invest or trade more than you can afford to lose.