South Africa 40 Cash Index price blasts through resistance
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying currently estimated at 24 points on the 18th of June 2024
South Africa 40 Cash Index
The bullish price reversal we were waiting for on the South Africa 40 Cash Index confirmed off the 69400-support level. The reversal was supported by a sharp move out of oversold territory and has seen the price of the index trading through the 70850 and 72185 resistance levels. The high at 74080 provides the next upside resistance target from the move.
Traders fortunate to have caught the initial move higher might consider trailing their respective stops to a close below the halfway mark of the current long bodied candle at roughly 71900.
Traders who have missed the initial move higher might hope for the first pullback for a new long entry opportunity, before targeting a retest of the high at 74080.
Small cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying currently estimated at 24 points on the 18th of June 2024.
South Africa 40 Cash Index (previous)
The bullish price reversal (circled blue) from oversold territory, highlighted in our previous note (below), for the South Africa 40 Cash Index has failed. This is noted by the price of the index having closed below the guided stop level at 70370.
While the short-term price correction has instead continued, the trend bias is still considered up as the 20MA (red) trades above the 50MA (green) which in turn trades above the 200MA (blue). The index now also trades back in oversold territory.
Trend followers might continue to wait out weakness and look for a bullish price reversal close to a lower level of support before finding long entry. The next levels of support are considered at 69400 and 67870 respectively.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying for the week commencing 10th of June 2024.
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