South Africa 40 Cash Index price forecast: waiting for a breakout
The price now trades within a narrow range between levels 65100 (support) and 66450 (resistance).
South Africa 40 Cash Index
The bearish reversal (circled blue) from overbought territory highlighted in our previous note did confirm, resulting in the South Africa 40 Cash Index trading to the 65100-support target.
The price now trades within a narrow range between levels 65100 (support) and 66450 (resistance).
Traders might wait for a break of one of these levels before considering a new directional trade.
When the breakout scenario presents itself we will update our view with targets and failure levels.
No cash adjustment expected
Traders will note that the South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week (commencing 13 November 2023).
South Africa 40 Cash Index (previous)
The reversal highlighted in our previous note saw the South Africa 40 Cash Index rally though both the initial upside targets before finding resistance at the 67580 level.
Currently we see a bearish reversal forming off this level and from overbought territory. We are looking for a close below the 66450 level to confirm the reversal.
In this scenario, 65100 becomes the initial downside support target from the move, while a close above the 67580 level might be used as a stop loss consideration for the setup.
Small cash adjustment expected
Traders will note that the South Africa 40 Cash Index is expected to adjust for a dividend in the underlying this week (on Tuesday the 7th of November 2023), currently estimated at 10.3 points.
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