South Africa 40 Cash Index price finds interim support
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 33,9 points on Tuesday the 4th of March 2025
South Africa 40 Cash Index
The South Africa 40 Cash Index broke the 80075 support level since our last note to extend the short-term correction from all time high territory. The price has now found interim support at the 78775 level.
The long-term trend for the index remains up and trend followers are in turn likely to want to maintain a long bias to positions on the SA40.
For confirmation that the short-term correction has ended, we would like to see a strong close above the 80075 level before targeting a retest of the high at 81850. In this scenario a close below the 78775 level might be used as a stop loss consideration.
Should we not get the bullish confirmation and instead we see a close below the 78775-support level, traders might look for a bullish price reversal at one of the lower levels of support before finding long entry.
Should either of these scenarios manifest we will update guidance accordingly.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 33,9 points on Tuesday the 4th of March 2025.
South Africa 40 Cash Index (previous)
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.
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