CNXIT - 3 Black Crows !!

It seems the number 3 is not moving out of my head !! After 3 Idiots ... Its 3 black crows !... Yes, the CNX IT index charts depicts exactly that - 3 black crows - as the Japanese would like to call them...

IT stocks have been in a selling pressure especially since the Dollar broke its important Rs 46 level. A further down move is not ruled out. We shall evaluate USDINR in a later blogpost...

The IT index seems to be 'peaking out' and this was mentioned some time back on my blog (See my blogpost of Dec 21, 2009).



It has reacted from near the indicated resistance level of 5800+... (actual high 5932).

On Candlestick charting, the last three days of fall would be termed as the 'three black crows' - which is essentially a reversal pattern. Upmoves near to 5750 may be treated corrective and traders may lighten their position in IT stocks.. And a break below 5500 should give you the final confirmation of 'reversal'..

Caveat Emptor (Buyers beware)

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.