South Africa 40 Cash Index price reversal, breakout and dividend reminder
The South Africa 40 Cash Index has now produced a close above the 66450-resistance level, and red trend line on our chart.
South Africa 40 Cash Index
The South Africa 40 Cash Index has now produced a close above the 66450-resistance level, and red trend line on our chart, confirming the upside breakout scenario from our previous note (below).
The move suggests an extension of the reversal off support (circled green) and from oversold territory. 67580 provides the initial upside resistance target from the move. The previously guided stop consideration of 65650 is now moved to a close below the 66450-support level.
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 (Tuesday 10 October) currently estimated at 136.3 points.
South Africa 40 Cash Index (previous)
The intraday reversal from our previous note (below) failed to confirm and instead we saw the downside break scenario manifesting. The price has since found support at the 65100 target and formed a bullish price reversal (circled green) off this level and from oversold territory.
For new long positions, traders might prefer to see some further momentum from the reversal. A close above trend line resistance and the 66450 level (should it occur) might provide bullish confirmation for long entry. In this scenario, 67580 becomes the initial upside resistance target from the move, while a close below 65650 might be used as a stop loss consideration for the trade.
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 (Tuesday 10 October) currently estimated at 136.3 points.
Key data to watch
Date |
Time |
Region |
Event |
Previous |
|---|---|---|---|---|
11 October 2023 |
2:30pm |
USD |
Core PPI m/m |
0.20% |
11 October 2023 |
2:30pm |
USD |
PPI m/m |
0.70% |
11 October 2023 |
8:00pm |
USD |
FOMC Meeting Minutes |
|
12 October 2023 |
8:00am |
GBP |
GDP m/m |
-0.50% |
12 October 2023 |
11:30am |
ZAR |
Mining production and sales, August |
-3.60% |
12 October 2023 |
1:00pm |
ZAR |
Manufacturing production and sales, August |
2.30% |
12 October 2023 |
2:30pm |
USD |
Core CPI m/m |
0.30% |
12 October 2023 |
2:30pm |
USD |
CPI m/m |
0.60% |
12 October 2023 |
2:30pm |
USD |
CPI y/y |
3.70% |
12 October 2023 |
2:30pm |
USD |
Unemployment Claims |
207000 |
13 October 2023 |
3:30am |
CNY |
CPI y/y |
0.10% |
13 October 2023 |
10:00am |
GBP |
BOE Gov Bailey Speaks |
|
13 October 2023 |
4:00pm |
USD |
Prelim UoM Consumer Sentiment |
67.7 |
14 October 2023 |
5:00pm |
GBP |
BOE Gov Bailey Speaks |
|
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