Will we see a Santa Rally on the FTSE 100?

FTSE 100 Christmas forecast 2021

Will we see a Santa Rally on the FTSE 100 – or a Christmas crash! The FTSE 100 is pretty much reacting as expected – it bounced off our previous “question marked zone” (where we made a break even long) and has now crashed back through it – failing to make a new high on the way up.

These swings make it very difficult to make low risk/ high reward trades on the FTSE 100 and we still see the best opportunity as a short on our “thick red line” or a long on our “thick white line” which is not shown on this chart but is current at around 6855.

We think the most likely course of the FTSE 100 is a bounce off our question mark zone towards the short entry zones marked by the red circles. We have pushed these zones out a couple of weeks against our previous update – that being said, there is nothing to stop the FTSE rocketing over the next few days!

Risk management, as always, is of paramount importance.

FTSE 100 Christmas forecast 2021
FTSE 100 Christmas Forecast December 2021

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