South Africa 40 Cash Index price now testing the next level of support
Traders will want to note that the South Africa 40 Cash Index is expected to adjust for a dividend in the underlying
South Africa 40 Cash Index
The South Africa 40 Cash Index has now traded through the 67400-support target and is now testing the 66450-support level.
A close below 66450 would consider another downside breakout with 65100 a further support target considered from the move (should the breakout manifest). In this scenario, a close above 67400 might be used as a stop loss consideration.
While the index has moved into oversold territory, this signal alone does not yet provide a strong enough suggestion for a rebound. Traders who are however looking for long entry might prefer to wait for extra confirmation in the form of a price close above the 67400 level. In this scenario, 68500 would become the initial resistance target form the move, while a close below 66450 might be used as a stop loss consideration.
Large cash adjustment expected
Traders will want to note that the South Africa 40 Cash Index is expected to adjust for a dividend in the underlying, currently expected to be around 143.6 points. The adjustment will take place late Tuesday afternoon (26 September 2023).
South Africa 40 Cash Index (previous)
The short criteria highlighted in our previous note came to fruition resulting in the South Africa 40 Cash Index trading directly to the 67400-support target. Part of the move would however have been attributed to the large cash adjustment from the dividend in the underlying (330.8 points).
After a quick rebound, the price has again formed a new bearish reversal ahead of what is a news heavy week.
The close below 68500 confirms the reversal, placing 67400 as the initial support target once again. Traders who are short might consider using a close above 68900 as a stop loss indication.
Large cash adjustment expected
While considering exits, traders will want to note that the South Africa 40 Cash Index is expected to adjust for a dividend in the underlying, currently expected to be around 176.9 points. The adjustment will take place late Tuesday afternoon (19 September 2023).
High impact data expected
Traders will also take note of high impact data scheduled this week which could have a material effect on global index movements, including the South Africa 40 Cash Index. Amongst these key data points are Wednesdays US Federal Reserve, Thursday’s Bank of England’s, and the South African Reserve Bank’s rate decisions.
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