South Africa 40 Cash Index price moves to range resistance
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying
South Africa 40 Cash Index
The South Africa 40 Cash Index has moved to test range resistance after the bullish price reversals off range support at 72185. Traders who have been long might consider exiting their trades at current levels before waiting for a new trading opportunity to manifest.
The long term trend bias for the index remains up, while in the near term a consolidation persists between levels 72185 (support) and 74420 (resistance).
The long term uptrend still favours keeping a long bias to positions. The short term consolidation suggests waiting for either a bullish price reversal off support or break of resistance for long entry.
Should either scenario present itself we will update guidance 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 for the week commencing 8 July 2024.
South Africa 40 Cash Index
The South Africa 40 Cash Index has both failed to reach the upside target and stop level guided in our previous note, but instead continued to consolidate in the near term.
The long term trend remains up for the index and long positions remain favoured in lieu. Traders who are already long might continue to use a close below the 72185 level as a stop loss consideration. Traders looking for new long positions might prefer to wait for a new bullish price reversal above the 72185 level for long entry. The recent high at 73880 provides a revised initial upside resistance target. Should this level be broken 74420 and 75350 become further upside resistance targets from the move.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying currently estimated at 18.7 points on the 2nd of July 2024.
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