South Africa 40 Cash Index price breaks resistance but remains overbought
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying
South Africa 40 Cash Index
The South Africa 40 Cash Index has now broken resistance at 74420. The close above this level suggests 75350 as the next resistance target from the move. Trading long into the breakout appears to provide an unfavourable risk to reward assumption. The overbought signal provides further uncertainty to the trade scenario.
Our preference is to wait for a pullback from overbought territory before looking for new long entry in line with the longer term uptrend bias.
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 15th of July 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has moved to test range resistance after the bullish price reversals off range support at 72185. Traders who have been long might consider exiting their trades at current levels before waiting for a new trading opportunity to manifest.
The long term trend bias for the index remains up, while in the near term a consolidation persists between levels 72185 (support) and 74420 (resistance).
The long term uptrend still favours keeping a long bias to positions. The short term consolidation suggests waiting for either a bullish price reversal off support or break of resistance for long entry.
Should either scenario present itself we sill update guidance accordingly with targets and failure levels.
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 8 July 2024.
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