South Africa 40 Cash Index price moves into near term range
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 167,7 points on Tuesday the 11th of March 2025.
South Africa 40 Cash Index
The South Africa 40 Cash Index confirmed the bullish setup scenario from our previous note, rallying to just short of the all-time high target at 81850. The price has since corrected, moving towards support at 78775.
The long-term trend for the index remains up, while in the short to medium term we assume a range between levels 78775 (support) and 81850 (resistance).
In lieu of the long-term uptrend still in place, traders might prefer to keep a long bias to positions.
New long entries might be considered on either a bullish price reversal closer to one of the labelled support levels, or on a break above range resistance at 81850.
Should one of these scenarios manifest we will update guidance accordingly with targets and failure levels.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 167,7 points on Tuesday the 11th of March 2025.
South Africa 40 Cash Index (previous)
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.
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