FLAG of CNX IT

• The Title should have been BULL FLAG of CNX IT. But considering the bearishness of Nifty and the Global markets I am being cautious.
• This pattern can act as a descending channel which takes the IT stocks down or can at as a Bull Flag which reverses the trend.
• The second chart shows how this particular index finding support just below 50 DMA. If price manages to close above 50 DMA chances of an upside breakout will increase.
• Important support for the index is at 6482. and Important resistance for the Bull Flag to work is at 6891.