South Africa 40 Cash Index: trailed stop triggered
After a strong rally we now see the South Africa 40 Cash Index starting to pullback from overbought territory.
Circled blue, we see the South Africa 40 Cash Index has now closed below both the suggested trailed stop levels from our previous note i.e the dotted black trend line and 72840 support level. This ends what has been a strong rally higher and instigates a short-term retracement from overbought territory.
We still consider the longer-term trend bias for the index to be up, despite the short-term retracement underway. Looking for long entry into the end of a pullback remains preferred over looking to short the index at current levels.
For long positions we would like to see the current retracement end with a bullish price reversal around one of the lower support levels 71125 or 69835. Alternatively, a price close above 72840 might consider long entry as well.
Cash adjustment / dividend
There is no cash adjustment expected on the South Africa 40 Cash Index this week.
IG client sentiment
The majority (75%) of IG clients with open positions on the South Africa 40 Cash Index (as of the 24th of April 2023) expect the price to fall in the near term, while 25% of IG clients with open positions expect the price to rise.
Key data to watch this week
| Date | Time | Region | Event | Previous |
| 25 April | 4:00pm |
USD | CB Consumer Confidence | 104.2 |
| 27 April | 2:30pm | USD | Advance GDP q/q | 2.6% |
| 27 April | 2:30pm | USD | Weekly Unemployment Claims | 245000 |
| 28 April | All day | EUR | German Preliminary CPI m/m | 0.8% |
| 28 April | 2:00pm | ZAR | Trade Balance, March 2023 | R16.13bn |
| 28 April | 2:30pm | USD | Core PCE Price Index | 0.3% |
| 28 April | 2:30pm | USD | Employment Cost Index q/q | 1.00% |
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