South Africa 40 Cash Index price could be forming an inverse head and shoulders pattern
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 28th of January 2025
South Africa 40 Cash Index
The South Africa 40 Cash Index produced an upside break of the 76640-level last week which has subsequently failed. As such we have revised the 76640 resistance level to 76825 as it has proved short term relevance.
The price action below the 76825 level resembles an inverse head and shoulder pattern, although this not yet completed or confirmed.
For the pattern to confirm we would like to see a strong close above the 76825 neckline before targeting a move back towards the 78775 level. In this scenario a close below the75760 level might be used as a stop loss consideration.
For new short positions, traders might instead look for a close below the 75760 level. In this scenario, 73715 becomes the initial support target from the move, while a close above the 76825 level might be used as a stop loss consideration.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 28th of January 2025.
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