After an incredible 2020, the financial markets have further proven that volatility can be expected in the coming year as well. The fast-evolving geopolitical and macro-economic landscape of this century has been a challenge for investors to navigate, and the same appears to be true for the year 2021.
The NASDAQ Index was among the most promising from a bullish viewpoint throughout 2020, and the trend appears to be continuing into 2021 as well. Therefore, it can be said that the NASDAQ has the best odds when it comes to expected gains for the coming year.
The technology and the Innovation sector have been the epicenter of the pandemic-fuelled growth that the financial markets experienced in 2020, driving the piles of capital toward high-growth technology companies. While the growth appears to have reached tipping points in certain instances, the available potential remains as strong as ever, giving investors and potential investors more reason than ever to turn their attention toward the US equity market.
Technical indicators are looking appealing for the NASDAQ index. First, bullish divergences can be observed in both the MACD and RSI. This provides optimistic investors with a relief that may help their optimism about the bullish continuation of the index.
In addition, there are some multiple positive double tops observed in the charts. These double tops often indicate that buyers have reached an important level, which may provide further support to the index.
Several NASDAQ stocks have managed to rack up solid gains in the recent months, including big tech giants like Apple, Amazon, and Microsoft. This has been instrumental in propping up the index as well.
In conclusion, it can be said that the NASDAQ has the best odds of gains in 2021, driven by the continued fast-paced growth regarding the technology and Innovation sectors. Technical indicators point toward continued bullishness, and optimistic investors can take advantage of this meteoric rise with careful planning and research.