South Africa 40 Cash Index price forecast: support being tested
Our guidance remains unchanged from our previous note
South Africa 40 Cash Index
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.
South Africa 40 Cash Index (previous)
The bearish price reversal (circled red) at resistance yielded a modest decline for the South Africa 40 Cash Index, although has failed to reach the 66250-support target. The price is currently consolidating within the 66250 to 68515 range.
Traders who have been short might consider using a time stop to exit at current levels whilst waiting for a better opportunity to present itself.
Long entry might be considered on either a bullish reversal closer to the 66250 or 65040 support levels, or alternatively on a break (close) above the 68515-resistance level.
Short entry might be considered on a bearish reversal of the 68515-resistance level.
Should one of the above scenarios manifest we will update 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 this week.
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