South Africa 40 Cash Index bullish price reversal from oversold territory
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 19th of November 2024
South Africa 40 Cash Index
The South Africa 40 Cash Index has formed a bullish price reversal off the 75830 support level. The bullish reversal is accompanied by a move out of oversold territory. 77050, 78450 and 80075 provide upside resistance targets from the reversal, while a close below 75830 would suggest the reversal to have failed.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 19th of November 2024.
South Africa 40 Cash Index (previous)
The bullish price reversal (circled red) has failed with the price moving to break the 77050 support level post the US election.
The price is currently testing support at 75830. A close below this level would suggest a downside break with 74420 the next support target considered.
The moving averages still show the long-term trend bias for the index to be up. The index has also moved back into oversold territory. The continues to suggest keeping a long bias to trades on the South Africa 40 Cash Index for now, despite the near-term correction of this trend underway.
For new long entry, we now wait to see where the correction settles, looking for a bullish price reversal at one of the labelled support levels. That is provided that the current pullback doesn’t extend past major lows or the 200 day simple moving average (blue line).
Cash adjustment expected
The South Africa 40 Cash Index expected to adjust for a dividend in the underlying of 13.3 points on Tuesday the 12th of November 2024.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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