CNX IT at critical juncturre. Breakout can take it much higher.

Nov 29, 2022

CNX IT Index is near a critical area on the chart, testing a 6-month long resistance line as well as testing the 200 DMA resistance. On the momentum too, RSI is testing resistance of its prior high of Aug and has formed a minor divergence at the current high. The Aug high was made following a 2 month long bullish divergence on the RSI, & hence can be treated more as a correction. The current rally since late Sep hardly saw any divergence on RSI. Even the 50 day MA (blue line) started sloping up, unlike as in Aug. The structure is looking good as of now, & if strong B/O happens, we can see some good rallies in IT stocks.

Analysis is for educational purposes only. No recommendations of any kind.