The United Kingdom is facing a number of headwinds at the moment: rising energy prices, a shortage of migrant workers, and general supply chain issues due to COVID. All this has meant that the UK is at risk according to some analysts of a recession next year. However, the FTSE 100 still has a technical resistance level to reach the post-COVID-19 prices at 7500. With current prices around 7000 is there still scope for the FTSE 100 to gain. If any of the current headwinds disappear/improve then check out these strong seasonals for the FTSE.
Over the last 10 years, the FTSE has risen 09 times between Oct 01 and Dec 31. The average rise has been 2.71% and the largest gain was in 2011 with a 12.30% rise. The largest loss was in 2018 with a -10.24% loss. Bear this seasonal pattern in mind.
Major Trade Risks: The main risk to this trade is if labour shortages, supply chain woes, and inflationary pressures lead to headwinds for the UK.