South Africa 40 Cash Index price correction in long term uptrend
The South Africa 40 Cash Index is not expected to adjust for a dividend
South Africa 40 Cash Index
The South Africa 40 Cash Index has started to pullback from resistance and overbought territory. The long-term trend for the index remains up suggesting trend followers keep a long bias to trades despite the near-term correction.
For long entry, traders might look for a close above the red trendline on the chart before targeting a move towards the 74080 level.
In this scenario, a close below the short-term low of the current correction might be used as a stop loss indication.
Should the price instead continue to drift lower, trend followers might hope to see a bullish price reversal closer to the 70850-support level for long entry. Should this scenario manifest, we will 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 27 May 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has extended gains even further, reaching the 73250-resistance level, around which it is hovering now. The price has offered little in the way of a pullback for new long entry into the prevailing uptrend.
The index remains in overbought territory and guidance remains the same as before i.e. trend followers will look to keep a long bias to trades waiting for the first correction of the move higher for long entry. Circled red we do have a bearish price reversal forming although not yet complete. An initial support level where new longs may be considered is around the 72185 level.
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 20 May 2024.
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