Gordon points out that the last consolidation phase ended in a sharp jump in the Nasdaq. Looking ahead, investors can expect a similar move higher by taking the lenght of the previous breakout and adding it to the current price. Consequently, the technical trader expects upside in the Nasdaq of up to 5,120 over the short-term and 5,300 in the long-term.

ETF traders who would like to capitalize on short-term moves can utilize leveraged ETFs to generate returns. However, potential investors should be aware that the potentially greater returns come with greater risks. For instance, the Ultra QQQ ProShares (NYSEArca: QLD) takes the double or +200% daily performance of the Nasdaq-100 and the ProShares UltraPro QQQ (NasdaqGM: TQQQ) mirrors the triple or +300% daily performance of the Nasdaq-100. [Growth ETFs Continue to Outperform]

PowerShares QQQ

For more information on the Nasdaq, visit our Nasdaq category.

Max Chen contributed to this article.