South Africa 40 Cash Index: price breakout and pullback
The South Africa 40 Cash Index confirmed our breakout analysis, reaching new highs before finding support at former resistance levels. The long-term uptrend remains intact with clear targets and an upcoming dividend adjustment.
South Africa 40 Cash Index
The South Africa 40 Cash Index confirmed the suggested upside breakout from our previous note, pushing to new high territory before pulling back to find support on what was previously resistance. The long term uptrend remains in tact and break out traders might consider the pullback as the second opportunity for long entry.
84450 remains the projected target from the triangle pattern. Traders who find long entry might use a close below the 80280 level as a stop loss consideration.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 138,9 points on Tuesday the 25th of March 2025.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has now rallied to and through all-time high resistance. We currently have a triangle consolidation breakout and are waiting for the breakout of the all-time high to confirm with a close above this level (81850).
Should the break of the all-time high confirm, the triangle consolidation projects an upside resistance target of 84450, while overhead trendline resistance projects a further target at the 85400 level. Traders who find long entry into the breakout (should it confirm) might consider using a close below 80280 level as a stop loss indication.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week.
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