South Africa 40 Cash Index price back at resistance
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 28th of October 2024
South Africa 40 Cash Index
The bearish price reversal on the South Africa 40 Cash Index, highlighted in our previous note resulted in a marginal decline, before losses were recouped and the 80075 level retested once again.
The long-term uptrend remains firmly intact and as such a long bias to trades remains preferred. However, the price is currently trading close to resistance at 80075.
For new long positions, traders might prefer to see the price break resistance with a close above the 80075 level, before targeting a move towards our upwardly revised trend line resistance target of 81600. In this scenario, a close below a one- or two-day low might be used as a stop loss indication.
Should the price instead fail to break the 80075 resistance level and start to retrace, trend followers might prefer to wait out weakness, looking for long entry on a bullish price reversal closer to one of the labelled levels of support.
Should either of these scenarios manifest we will update guidance accordingly.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 29th of October 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has made a good attempt towards the 80075 resistance target but has now formed a bearish price reversal (circled red) from overbought territory. Traders who have been long into the move higher might consider exiting their positions whilst waiting to re-enter long on a bullish price reversal closer to one of the lower levels of support.
The primary trend for the index remains up, suggesting that trend followers still look to keep a long bias to trades rather than trading short in contrary to the primary direction of the market.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 22nd of October 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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