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2020 was a great year to start investing money when the markets fell huge and presented a nice opportunity for investors to enter at a discounted price.
But even if you’ve missed the opportunity, then no worries! Because “time in the market” always beats “timing the market.”
So if 2021 is the year you are planning to invest your money for the long term, then here we are with our list of 5 best stocks to invest in 2021.
Best Stocks to Invest in 2021
When you’re investing long term, you want to bet your money on the best companies that are shaping the future. So in this blog, we’re doing exactly the same.
In this blog, we’re not only giving you the list of 5 best stocks to invest in 2021 but also the exact optimal price to buy them at using psychological levels and price action analysis.
But before we begin, just a healthy disclaimer that some of these stocks on the list are a little overvalued right now because of all the hype around them, so it’s not recommended to dump all your money on them right now. You can always wait for them to correct and offer a better value to invest.
So with that out of the way, let’s begin!
#5: Alphabet (GOOG)
Yes, Google, the platform you used to search this content. It is kind of a monopoly business that is not going anywhere, at least for the next few decades, meaning it’s a perfect pick for the long-term. Also, the growth potential is massive, which makes it a deserving candidate for your portfolio.
But wait, don’t just invest in it right now. The stock is currently overvalued, and looking at the technical chart, it is forming a bearish head and shoulder reversal pattern, which means a correction may come in the near term.
Based on the past performance, you can expect Alphabet to drop to as low as the 38% Fibonacci retracement level at $1531 in 2021.
If you’re just getting started and definitely want to get your portfolio exposed to Alphabet, then you can also consider other key psychological levels at $1717 and $1648 to buy your first shares.
There’s also a slight chance that it could drop even further towards the 50% Fibonacci retracement level of $1440, so the key here is NOT to get panicked if the price drops and keep buying the dip.
#4: Nvidia (NVDA)
Nvidia used to be the top on this list back in 2016 when it was trading at $32. Currently, the stock price is way overvalued and might not be at a point where you can buy it for the long term.
This doesn’t mean that Nvidia isn’t a valuable company anymore. It also doesn’t mean that its growth potential is fading away. In fact, Nvidia is betting big on the future by purchasing companies like Arm for $40 billion, which obviously got investors excited and one of the main reasons why its stock price is way overvalued right now.
Looking at the chart, you’d notice that NVDA has just broken below the Ichimoku Cloud on the daily chart after topping out at the all-time-high levels of 585. The Fibonacci retracement levels suggest we could see pullbacks towards 491, 439, and maybe even 395, respectively.
If you don’t have any NVDA and want to get started being a part of the economy of the future, then you can consider starting at the higher Fibonacci levels that we just discussed above.
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#3: Xilinx (XLNX)
Xilinx, the semiconductor company that invented the field-programmable gate array, and got a HUGE boost when AMD said they’re going to buy them. It is one of those companies that has the most potential going forward, and if you’re a tech investor, then this surely deserves a spot in your portfolio.
But why is AMD not on the list today? Wouldn’t it be a better investment than Xilinx being the parent company? Well, the problem with AMD is that it’s not as cash-rich as NVDA, and that has been getting investors a bit worried, which is also the reason why AMD isn’t on the list today.
But Xilinx is because it can help AMD compete in the programmable chip area with the Altera division owned by Intel.
Intel, by the way, is not on the list because it’s kind of a dinosaur with a lot of money but way too much corporate politics that could prevent them from actually growing.
Back to Xilinx, it’s currently hyped up, but it looks like it has already topped out, and now on a pullback. Perhaps a great time to even take profits if you’ve been holding on to your positions. But heading into 2021, we could expect it to revisit some of the following key psychological levels.
Are you ready to take notes? Cool. We’re looking at 141, 132, 119, and 110 as potential buy limit orders heading into 2021.
#2: Qualcomm (QCOM)
It’s hard for Qualcomm to not feature in a list consisting of the best stocks to invest in 2021.
5G is definitely shaping our future, and Qualcomm is one of the best bets if you’re looking to be a part of the 5G revolution. Oh, and by the way, if you’re actually excited about the opportunities that 5G presents, then you must check out this video on best 5G stocks to buy right now.
Now what’s been getting investors a bit worried about Qualcomm is the fact that Apple is working on making their own 5G modems to replace Qualcomm in 2021. But not only this could take a while, but Qualcomm should also still obtain royalty fees for its handsets.
Plus, the 5G modem isn’t the biggest part of Qualcomm’s business, and every other 5G phone other than Apple will still be using Qualcomm anyway, so we’re not super worried about this setback.
But looking at the chart, Qualcomm’s stock price is overvalued right now, and it has already started its pullback. Considering the importance of 5G in the future, if you don’t have any Qualcomm in your portfolio, you could get started at the current market price of around 152.
Qualcomm has been choppy in the past, though, so we won’t be surprised to see further pullbacks towards key psychological levels in 2021, including 134, 121, and 108.
#1: Microsoft (MSFT)
Last but not least on our list today is Microsoft, a company that has been able to reinvent itself time and time again and has been expanding its vision to more and more futuristic stuff.
By the way, if you’re interested in more fundamental information on the stock, then you can check out this video here on Microsoft and why it might be a good investment for the future.
But for now, its stock price seems to have topped out just like all the other stocks on our list today, and we might not see big moves until the end of January when the hype could restart around its earnings date.
Right now its stock price is hovering around a pivot level at 211 right at the Ichimoku cloud, but we could see further drops towards 199, 187, and perhaps even 172 in 2021.
So there you have it, our 5 best stocks to invest in 2021.
Now before we end this blog, a disclaimer here: None of the price levels we gave you today are actually guaranteed and you must pick the best price that works for you, your risk tolerance, and your financial goals, on your own. Investing is not a 1-size fit all and you must only create strategies that are unique to you because what works for me, might not work for you. If you need help understanding your risk tolerance and how to create investment strategies unique to your situation, then check out my free on-demand masterclass today, the link is below 👇.