South Africa 40 Cash Index correcting longer term uptrend
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 63.1 points
South Africa 40 Cash Index
The South Africa 40 Cash Index has now broken support of the near-term range (highlighted grey). The short term move lower now serves as a correction of the longer-term uptrend which remains in place.
Traders respecting the longer-term uptrend might prefer to wait out weakness and look to see where the price finds support before looking for new long positions. Ideally new long positions would be considered on a bullish price reversal closer to support. 74420 provides the initial support target where positions might be considered.
Guidance with targets and failure levels will be updated once the price has found support and produced a bullish price reversal.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 63.1 points on Tuesday the 3rd of September 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has moved into a short-term consolidation after rallying to new high territory. The consolidation finds resistance between the levels 77270 and 77600.
The long-term trend for the index remains up. The reluctance of the price to correct lower after a strong move higher also suggests a bullish bias to the short-term consolidation.
For new long positions, traders might look for a break (close) above the 77600 level before targeting a move towards overhead resistance at 78500. In the event that we do instead see the price starting to correct lower, traders respecting the longer-term uptrend might prefer to wait out weakness towards one of the lower support levels labelled before finding long entry.
Should either of these scenarios manifest we will update guidance accordingly with targets and failure levels.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 17.1 points on Tuesday the 26th of August 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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