Nasdaq 100 Forecast: Tech Stock Rally Stops to Catch its Breath, What Next?
Oct 13, 2020 (MENAFN via COMTEX) —
(MENAFN – DailyFX) Nasdaq 100 Price Outlook:
The Nasdaq 100 roared higher without a clear catalyst this week, only to consolidate around 12,100 With earnings season kicking off this week and next, can the Nasdaq press higher still? Nasdaq Trading Basics: How to Trade Nasdaq 100 Nasdaq 100 Forecast: Tech Stock Rally Stops to Catch its Breath, What Next?
Resistance looked to keep the Nasdaq 100 in check last week as a technical barrier around the 11,570 mark loomed over the tech-heavy index. Evidently, the bullish break on Friday opened the door for a continuation higher and as the leader of speculative risk appetite, the Nasdaq accepted the challenge with glee. Subsequent gains were quick to follow as the Nasdaq charged more than 700 points – nearly 6% – higher in just two sessions.
Interestingly, the surge higher in tech stocks lacks an obvious catalyst. Traders, investors and analysts have attributed the climb to stimulus hopes, a ‘blue sweep’ in November and optimism ahead of earnings season, while others have called it completely unfounded altogether. Regardless of the reason behind the rally, price has ascended far and fast and now trades just a few percentage points from its all-time high, but can the rally continue?
Nasdaq 100 Price Chart: 1 – Hour Time Frame (September 2020 – October 2020)
Well, suggesting weakness in the Nasdaq has seemingly become a fool’s errand as of late, as it continues to press higher time and time again, oftentimes devoid of fundamental catalysts. That said, mean reversion is an ever-present force and it is unlikely the Nasdaq 100 can press higher forever, despite its best efforts.
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