The UK FTSE has been weighed down by both COVID and Brexit concerns over the last few years. This has meant that a large gap on the charts up to 7500 is still to be filled. You can think of this as the ‘COVID’ gap as this 7500 region was around the level that the FTSE was trading at before COVID. Will this level be filled before year-end now?
Over the last 21 years, the FTSE100 has risen 76.19% of the time between October 15 and December 30 with an average return of +2.43%. The largest gain was in 2020 with a 12.40% rise. The largest loss was in 2002 where it registered a -5.56% loss.
Major Trade Risks: Any breakdown in Brexit issues between the EU and the UK could hinder this outlook as could climbing COVID-19 cases in winter.