South Africa 40 Cash Index price searching for support
The long-term trend remains sideways, while in the short term the price of the South Africa 40 Cash Index continues to correct.
South Africa 40 Cash Index
The South Africa 40 Cash Index realized the short exit target of 69760 relatively quickly (guided in previous note below), although in hindsight this profit limit could have been extended as we see the index having traded through multiple support levels thereafter.
The move below 68500 sets 66450 as a further possible support target, although the index now trades deep within oversold territory.
The long-term trend remains sideways, while in the short term the price of the South Africa 40 Cash Index continues to correct.
For new long positions, we would like to see a bullish candlestick / price reversal closer to the 66450-support level. Long positions might also be considered on a bullish close back above resistance at 68500, supported by a move out of oversold territory.
Should either of these scenario’s manifest we will update guidance accordingly with targets and failure levels.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index’ reversal from resistance and overbought territory has seen the price move and temporarily settle at the 71125-support level.
A break of support (71125), confirmed with a close below could unlock further decline, with 69760 the initial downside target from the move. In this scenario, traders might consider using a close above the high at 71900 as a stop loss consideration for the trade.
For long positions, traders might instead prefer to see a rebound off support and close above the 72370-resistance level, before targeting a move towards 74180. In this scenario, a close below 71900 might be used as a stop loss consideration.
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