Our FTSE100 forecast for 2021 is based around our belief that the FTSE100 is in the final 9 to 12 months of a multi year cycle.
We have 3 potential scenarios in mind which will see this cycle end in late 2021 or early 2022.
Each scenario shows the FTSE gaining some ground up to February/ March 2021 before a significant fall into the end of the cycle.
Scenario one will see the FTSE100 topping out in January/ February 2021 between 7000 and 7100. The FTSE100 will then fall to at least 5000 and potentially under 4000. Yes we now how this sounds but past cycles and our analysis show this is possible.
Scenario 2 will see the FTSE topping out in February/ March 2021 between 7300 and 7400 then falling down to between 4000 and 5250.
Scenario 3 will see the FTSE topping out in March/ April 2021 between 7520 and 7570 before falling down to between 4350 and 5550.
So which scenario is the most likely? We simply don’t know at this stage but 2021 is likely to be as wild one way or another as 2020 was.
Whatever your view is have a great 2021 and remember to look for low risk – high probability trades.
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.