South Africa 40 Cash Index price correction sees support tested
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 25th of February 2025
South Africa 40 Cash Index
The South Africa 40 Cash Index has now started its first correction since making a new all-time high. The long term trend for the index is reaffirmed as up, and as such a long bias to new positions on the index is once again preferred.
The short term correction of the long term uptrend is now testing support around the 80075 level. We are looking for a bullish price reversal to form around one of the labelled support levels on the index, before looking for new long positions. In this scenario, a close below the reversal low might be used as a stop loss indication while targeting a retest of the high at 81850 initially. A close above this high would suggest overhead resistance as a further target at roughly 84750.
Should this scenario present itself we will update guidance accordingly. For now we await to see where the current short term correction underway takes us.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 25th of February 2025.
South Africa 40 Cash Index
The suggestion of exiting long positions on the South Africa 40 Cash Index around the all-time high in our previous note, appears to have been premature. The index has since produced an upside break of the previous high of 80075. The upside breakout now suggests that overhead trend line resistance at 84750 could be a longer term target for the South Africa 40 Cash Index.
The move reaffirms the uptrend for the index, suggesting that trend followers would again look to keep a long bias to trades.
For new positions we are now waiting for the first pullback from new high territory, preferably with the pullback ending with a bullish price reversal closer to one of the labelled support levels on our chart.
Should this scenario present itself 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 on Tuesday the 18th of February 2025
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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