CNX IT poised for a possible breakout.

5 lut

CNX IT INDEX: has been in consolidation for the last over 15 months. For the last 10 months the index has been making Higher Lows & Higher Highs and is currently trading about 6% below its Pivot, about 39,500. Its relative performance to CNX 500 has been taking support near its mid Sep 2022 low. For the last 10 months the relative performance has been stuck in a sideways range (bottom window on the chart). RRG (Relative Rotation Graphs) indicates the index has moved to the leading quadrant, both on 5 weeks and 5 days basis. (Pl. check my earlier post here). If the current momentum continues and the index starts trading above 39,500 level, we can expect some good rally in the IT stocks. On the charts the Index has potential to test 47,000, and then 52,000. The key is, ability of the IT Index to sustain above 39,500 level.
Only personal analysis. No recommendation. Please consult your professional finanacial consultant / advisor before taking any investment or trading decision.