Nasdaq 100 to inch higher gradually towards 13075/13210 and perhaps even last August peak of 13720 – SocGen

The Nasdaq 100 index is currently experiencing a short-term uptrend, as evidenced by its recent golden crossover – a chart pattern that occurs when a short-term moving average crosses above a long-term moving average. According to economists at Société Générale, this development highlights the likelihood of further upside.

In addition to the golden crossover, daily MACD (Moving Average Convergence Divergence) has been posting positive divergence and has now established itself above the equilibrium line, which denotes the prevalence of upward momentum. These technical indicators suggest that the Nasdaq 100 could continue to move higher in the coming weeks and months.

Furthermore, the index is expected to gradually inch towards previous gap levels at 13075/13210, and perhaps even last August’s peak of 13720. However, it is important to note that the defence of the 200-DMA (Daily Moving Average) near 11900 will be crucial for the continuation of the uptrend.

The Nasdaq 100 index comprises 100 of the largest non-financial companies listed on the Nasdaq stock exchange, and is heavily weighted towards technology stocks. As such, it has been performing strongly in recent years, particularly during the COVID-19 pandemic, as demand for tech services and products has surged.

One of the most notable companies within the Nasdaq 100 is Apple, which has been on a remarkable run over the past year. Despite the pandemic, Apple’s share price has more than doubled since March 2020, driven by strong sales of its iPhone, iPad, and Mac products.

Other top-performing stocks within the index include Amazon, Tesla, Alphabet (the parent company of Google), and Microsoft. These companies have all benefited from the shift towards online commerce and remote working during the pandemic, and are expected to continue to perform well in the post-pandemic world.

Looking ahead, there are a number of factors that could influence the performance of the Nasdaq 100. These factors include the ongoing COVID-19 pandemic, which could lead to further lockdowns and business closures; the outcome of the US presidential election, which could have a significant impact on regulation and trade policies; and the global economic outlook, which remains uncertain due to the pandemic and geopolitical tensions.

In addition to these macroeconomic factors, there are also company-specific factors that could impact the performance of individual stocks within the index. For example, Apple’s performance will be influenced by factors such as iPhone sales, App Store revenue, and the success of its new products, such as the Apple Watch and AirPods.

Similarly, Amazon’s performance will be influenced by factors such as e-commerce sales, cloud services revenue, and the success of its Prime membership program. Overall, it is important for investors to keep abreast of these factors and to monitor the performance of individual stocks within the index in order to make informed investment decisions.

In conclusion, the Nasdaq 100 index is currently experiencing a short-term uptrend, driven by technical indicators and the strength of its constituent companies, particularly within the technology sector. While there are a number of macroeconomic and company-specific factors that could impact its performance in the coming months, the outlook for the index remains positive. As such, investors may want to consider including Nasdaq 100 stocks in their portfolios in order to benefit from the potential upside.

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