South Africa 40 Cash Index price reversal suggesting further gains
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying for the week commencing 22nd of July 2024
South Africa 40 Cash Index
Our preferred scenario from our previous note (below) has manifested, with the South Africa 40 Cash Index having pulled back from overbought territory towards the 72185 support level.
Circled blue we see a bullish price reversal suggesting an end to the recent correction and possible resumption of the longer term uptrend. 74420 becomes the initial upside resistance target from the move. A break of this level (confirmed with a close above) would suggest 75350 as a further target. Traders who are long might consider using a close below the reversal low or 72185 support level as a stop loss indication.
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 22nd of July 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has now broken resistance at 74420. The close above this level suggests 75350 as the next resistance target from the move. Trading long into the breakout appears to provide an unfavourable risk to reward assumption. The overbought signal provides further uncertainty to the trade scenario.
Our preference is to wait for a pullback from overbought territory before looking for new long entry in line with the longer term uptrend bias.
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 15th of July 2024.
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
