South Africa 40 Cash Index price reversal fails
There is no dividend adjustment for the index expected this week
South Africa 40 Cash Index
The bullish price reversal (circled blue) from oversold territory, highlighted in our previous note (below), for the South Africa 40 Cash Index has failed. This is noted by the price of the index having closed below the guided stop level at 70370.
While the short-term price correction has instead continued, the trend bias is still considered up as the 20MA (red) trades above the 50MA (green) which in turn trades above the 200MA (blue). The index now also trades back in oversold territory.
Trend followers might continue to wait out weakness and look for a bullish price reversal close to a lower level of support before finding long entry. The next levels of support are considered at 69400 and 67870 respectively.
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 10th of June 2024.
Key data this week
Date |
Time |
Region |
Event |
Previous |
11 June 2024 |
1:00pm |
ZAR |
Manufacturing Production m/m |
-2.2% |
11 June 2024 |
1:00pm |
ZAR |
Manufacturing Production y/y |
-6.4% |
12 June 2024 |
8:00am |
GBP |
GDP m/m |
0.4% |
12 June 2024 |
2:30pm |
USD |
Core CPI m/m |
0.3% |
12 June 2024 |
2:30pm |
USD |
CPI m/m |
0.3% |
12 June 2024 |
2:30pm |
USD |
CPI y/y |
3.4% |
12 June 2024 |
8:00pm |
USD |
Federal Funds Rate |
5.50% |
12 June 2024 |
8:00pm |
USD |
FOMC Economic Projections |
|
12 June 2024 |
8:00pm |
USD |
FOMC Statement |
|
12 June 2024 |
8:30pm |
USD |
FOMC Press Conference |
|
13 June 2024 |
11:30am |
ZAR |
Gold Production y/y |
-4.5% |
13 June 2024 |
11:30am |
ZAR |
Mining Production m/m |
-5% |
13 June 2024 |
11:30am |
ZAR |
Mining Production y/y |
-5.8% |
13 June 2024 |
2:30pm |
USD |
Core PPI m/m |
0.5% |
13 June 2024 |
2:30pm |
USD |
PPI m/m |
0.5% |
13 June 2024 |
2:30pm |
USD |
Unemployment Claims |
|
14 June 2024 |
Tentative |
JPY |
BOJ Policy Rate |
<0.10% |
14 June 2024 |
Tentative |
JPY |
Monetary Policy Statement |
|
14 June 2024 |
Tentative |
JPY |
BOJ Press Conference |
|
14 June 2024 |
4:00pm |
USD |
Prelim UoM Consumer Sentiment |
69.1 |
14 June 2024 |
Tentative |
USD |
Treasury Currency Report |
|
South Africa 40 Cash Index (Previous)
The South Africa 40 Cash Index has now confirmed a bullish price reversal off the 70850-support level. The price reversal is further supported by a move out of oversold territory.
In turn, a short-term resumption of the longer-term uptrend is considered, with 72185 the initial upside resistance target. A close below the reversal low at 70370 might be used as a stop loss consideration.
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 3rd of June 2024.
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