NASDAQ 100 forecast for the remaining of 2022 and beyond
Will the recent US Tech 100 upward momentum continue and what analyst forecasts for the rest of the year?
NASDAQ 100 forecast for the remaining of 2022
The NASDAQ 100 Composite Index has seen a rebound in recent weeks recovering 50% of the 2022 losses but remains in a downtrend due to the weight of accelerating inflation, interest rate hikes, and fears of recession.
Will the recent US Tech 100 upward momentum continues and what analyst forecasts for the rest of the year?
US Tech 100 price analysis
When looking at the US Tech 100 chart over the long term, it can seem as though the significant gains made in 2021 are threatened by a very uncertain 2022.
The Covid-19 pandemic marked the index and its companies’ coming of age in many respects. They grew by almost 50% in 2020 and about 25% in 2021 as tech companies saw the value of lockdowns and new homeworking habits.
The index was trading at the 12,600 level in early August 2022, down from 16,501.77, a decline of over 20% YTD.
As a result of declining stock prices, many companies are trapped towards the bottom of their 52-week ranges, with names like Netflix (NFLX) and Okta Inc (OKTA) suffering worse losses.
Tech stocks made up the index’s worst five performers during the past 12 months. The difficulties faced by Netflix (NFLX) have highlighted a dramatic decline in investor support for the technology.
As Covid-19 gains were scaled back, Zoom Video Communications (ZM) and DocuSign (DOCU) both had over 70% declines in value over the past year.
At the end of August, a medium-term Nasdaq 100 technical analysis revealed conflicting results regarding the index’s future.
After a 50% retracement of the last leg up, US Tech 100 has risen to a few consecutive lows and failed below the 14.000 level.
From an Elliott Waves perspective, it might be the B wave that could be followed by another corrective wave C. A potential wave C can also be broken down into a smaller degree (5 waves structure).
For this scenario to be valid the B wave retraces no more than 61.8% of A, or 14.000 points, which seems very likely now.
The C wave must go beyond the end of A, or below 11.000 points.
The C wave normally is at least equal to A, which means that US Tech 100 could decline up to 8.000 points by the end of the year and beyond.
Nasdaq 100 forecast for 2022 and beyond
Bulls and bears each have a different vision for the NASDAQ 100 Index, with bulls seeing this year’s setbacks as minor inconveniences and bears more fearful that danger lies ahead for the equity markets. As of August 2022, algorithmic Nasdaq 100 predictions were lukewarmly favourable.
After some mid-year volatility for its US Tech 100 projection, Trading Economics predicted growth would continue through 2022, closing the year with a price estimate of 14,277.50 to 15,084.80.
A price objective of at least 17,221.20 by December 2025 would represent an increase of more than 30% from the current level, which is an ambitious projection.
The US Tech 100 was predicted to continue rising throughout the year, with a 9% gain to a price of 14,415.67 in December, according to Wallet Investor’s projection for the index for 2022. Long-term forecasts did not call for the index, which closed at 22,086.54 in December 2025, to decline.
Please be aware that algorithm-based NASDAQ projections are subject to error and frequent change. Forecasts shouldn’t be utilized in place of your own independent research. Always perform your own research before making an investment. Furthermore, never trade or invest money that you cannot afford to lose.
The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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