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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

South Africa 40 Cash Index price target realised

The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week

Souyrce: Adobe Images

South Africa 40 Cash Index

Source: IG Charts
Source: IG Charts

The South Africa 40 Cash Index has now reached the 74420 resistance target suggested from the bullish price reversal (circled blue) out of oversold territory.

The small-bodied candles on the move to the initial resistance target question the momentum of the move higher. In turn traders who have been long into the move might consider exiting their long trades around current levels, before waiting for a new opportunity to present itself.

A long bias to new trades is still preferred in lieu of the longer-term uptrend still in place. Ideally traders might wait for the next breakout or bullish price reversal off support for long entry once again. Should such a scenario present itself we will update guidance accordingly with targets and failure levels.

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 29th of July 2024.

Key data this week

Traders will note a busy economic calendar this week, with a number of high impact events scheduled.

Date

Time

Region

Event

30 July 2024

All Day

EUR

German Prelim CPI m/m

30 July 2024

4:00pm

USD

CB Consumer Confidence

30 July 2024

4:00pm

USD

JOLTS Job Openings

31 July 2024

3:30am

CNY

Manufacturing PMI

31 July 2024

Tentative

JPY

BOJ Policy Rate

31 July 2024

Tentative

JPY

Monetary Policy Statement

31 July 2024

Tentative

JPY

BOJ Outlook Report

31 July 2024

Tentative

JPY

BOJ Press Conference

31 July 2024

11:00am

EUR

Core CPI Flash Estimate y/y

31 July 2024

11:00am

EUR

CPI Flash Estimate y/y

31 July 2024

2:00pm

ZAR

Balance of Trade

31 July 2024

2:15pm

USD

ADP Non-Farm Employment Change

31 July 2024

2:30pm

USD

Employment Cost Index q/q

31 July 2024

4:00pm

USD

Pending Home Sales m/m

31 July 2024

8:00pm

USD

Federal Funds Rate

31 July 2024

8:00pm

USD

FOMC Statement

31 July 2024

8:30pm

USD

FOMC Press Conference

1 August 2024

1:00pm

GBP

BoE Monetary Policy Report

1 August 2024

1:00pm

GBP

Monetary Policy Summary

1 August 2024

1:00pm

GBP

MPC Official Bank Rate Votes

1 August 2024

1:00pm

GBP

Official Bank Rate

1 August 2024

2:30pm

USD

Unemployment Claims

1 August 2024

4:00pm

USD

ISM Manufacturing PMI

2 August 2024

2:30pm

USD

Average Hourly Earnings m/m

2 August 2024

2:30pm

USD

Non-Farm Employment Change

2 August 2024

2:30pm

USD

Unemployment Rate

South Africa 40 Cash Index - Previous

Source: IG Charts
Source: IG Charts

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.

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.

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