South Africa 40 Cash Index price moves through resistance
The South Africa 40 Cash Index is now testing resistance for an upside breakout
South Africa 40 Cash Index
The After a failed reversal off the 68515-resistance level, the price of the South Africa 40 Cash Index is now suggesting an upside break of this level.
A close above 68515 would confirm the breakout suggesting a move towards the 70550-resistance level. In this scenario, a close below the 67940-support level might be used as a stop loss indication.
The suggested upside move does caution with the index now trading firmly in overbought territory. While this does lower the expected probability of a move higher, the upside breakout (should it confirm) would on balance still take precedence over the overbought signal, in lieu of the view that price action supersedes signals from technical indicators.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has now rallied to outer range resistance at 68515.
The price is testing this level and as per previous guidance, we are now looking for either an upside break or bearish reversal off this level.
A short trade scenario might be considered on a bearish price reversal off this level with a close below the 67940-level confirming the downside momentum. Ideally traders might like to see a reversal accompanied by a move back out of overbought territory. In this scenario, 66700 provides conservative downside target, while a close above the reversal high might be used as a failure indication.
For a long entry consideration, traders might prefer to see a strong close above the 68515-resistance level. In this scenario a move towards 70550 is favoured, while a close below the 67940 level might be used as a failure indication.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying before market close on Tuesday the 2nd of April for an estimated 125.8 points.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
