2016 could be another big year for tech: Trader

It's been a banner year for technology stocks.

The tech-heavy Nasdaq 100 is up more than 10 percent in 2015 with much of the rally being led by stellar performances from some of its biggest holdings. Microsoft, Amazon, Alphabet and Facebook, which make up more than 21 percent of the index, are up a respective 22, 123, 49 and 37 percent year to date. According to one trader, the winning streak could continue as we head into 2016.

"We've been consolidating for most of November and December," Todd Gordon said Tuesday on CNBC's "Trading Nation" while looking at a chart of the QQQ, the ETF that tracks the Nasdaq 100. The ETF has traded sideways for the last two months, eking out a minimal gain. "It looks like we're finally going to break out," said Gordon.

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The QQQ is less than 2 percent from its 2015 high of $115.75, hit in late November, and for Gordon, any break above that high could send QQQ to levels not seen since the turn of the century.


"We should be able to get above the $120 area after we break [resistance]," said Gordon, founder of TradingAnalysis.com and CNBC contributor. That's a potential 6 percent move from its current level of around $114 and takes the ETF to or above its all-time high of $120.50, hit in the year 2000.

"I think there's a good technical setup [for a rally] following a breakout of the November and December range," added Gordon.

The QQQ was lower along with the rest of the market on Wednesday, trading around $114.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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