South Africa 40 Cash Index price forecast: bullish reversal off support
The South Africa 40 Cash Index has managed to produce a bullish price reversal off the 66250 level, as per our scenario in the previous note
South Africa 40 Cash Index
The South Africa 40 Cash Index has managed to produce a bullish price reversal off the 66250 level, as per our scenario in the previous note (below).
The bullish price reversal (circled red) is accompanied by a move out of oversold territory on the stochastic oscillator.
These indications suggest long trade setup with 68515 the initial resistance target from the move. A close below the reversal low or 66250 level might have been used as the initial stop loss, although new long positions from current as well as existing long positions might consider trailing their stop loss levels to a close below the one day low.
Key economic data for the week commencing 19 February
Date |
Time |
Region |
Market Event |
Forecast |
20 February 2024 |
11:30am |
ZAR |
Unemployment rate |
31.90% |
21 February 2024 |
9:00pm |
USD |
FOMC Meeting Minutes |
|
21 February 2024 |
10:00am |
ZAR |
CPI y/y |
5.10% |
21 February 2024 |
2:00pm |
ZAR |
National Budget Speech |
|
22 February 2024 |
10:15am |
EUR |
French Flash Manufacturing PMI |
43.1 |
22 February 2024 |
10:15am |
EUR |
French Flash Services PMI |
45.4 |
22 February 2024 |
10:30am |
EUR |
German Flash Manufacturing PMI |
45.5 |
22 February 2024 |
10:30am |
EUR |
German Flash Services PMI |
47.7 |
22 February 2024 |
11:30am |
GBP |
Flash Manufacturing PMI |
47 |
22 February 2024 |
11:30am |
GBP |
Flash Services PMI |
54.3 |
22 February 2024 |
3:30pm |
USD |
Unemployment Claims |
212K |
22 February 2024 |
4:45pm |
USD |
Flash Manufacturing PMI |
50.7 |
22 February 2024 |
4:45pm |
USD |
Flash Services PMI |
52.5 |
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index continues to consolidate between levels 66250 (support) and 68515 (resistance). The price is drifting to the support of this range, although now trades within oversold territory.
Our guidance remains unchanged from our previous note in that:
- For long entry we are looking for either a bullish reversal closer to the 66250 or 65040 support level.
- For short entry we are looking for a bearish reversal of the 68515-resistance level.
Should one of the above scenarios or more favourable setup manifest we will update accordingly with targets and failure levels.
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