South Africa 40 Cash Index price testing resistance, large cash adjustment expected
The SA40 Cash Index has now moved to test our resistance target at 70700. Stop loss trailed higher.
The South Africa 40 Cash Index has proceeded to test our 70700-resistance target following the upside break of the 69240 level.
Currently we are looking for a close above the 70700 level to open a path to our next resistance target at 72840.
Traders who are long from the previous breakout might consider trailing their respective stops from the 68550 level to a close below the 69835 level now while in search for further gains.
Cash adjustment
Traders of the South Africa 40 Cash Index can expect an adjustment in line with the dividend in the underlying index at equity market close on Tuesday the 28th of March 2023. The dividend in the underlying is currently expected to be 178.3 points.
Client Sentiment
As of 12h30 on Tuesday the 28th of March 2023, the majority (69%) of IG clients with open positions on the South Africa 40 Cash Index expect the price to fall, while 31% of clients with open positions expect the price to rise.
Key Data to watch
The week ahead has several key events both domestically and internationally which could provide short term volatility to markets and in turn the South Africa 40 Cash index.
On the local front, Thursday’s South African Reserve Bank (SARB) Monetary Policy Committee (MPC) meeting will have traders expecting another 25-basis point (0.25%) rate hike at its conclusion. Friday’s US inflation data (Core PCE Price Index) has the potential to move markets most, in lieu of its effects on the pace and path of monetary policy (particularly in the US), a key theme at present.
A calendar of scheduled economic data points for the week is as follows:
| Date | Time | Region | Event | Previous |
|---|---|---|---|---|
28 March 2023 |
4:00pm |
USD |
CB Consumer Confidence |
102.9 |
30 March 2023 |
11:30pm |
ZAR |
PPY y/y |
12.70% |
30 March 2023 |
3:00pm |
ZAR |
SARB Rates Announcement |
|
30 March 2023 |
All Day |
EUR |
German Prelim CPI m/m |
0.80% |
30 March 2023 |
2:30pm |
USD |
Final GDP q/q |
2.70% |
30 March 2023 |
2:30pm |
USD |
Unemployment Claims |
191K |
31 March 2023 |
2:00pm |
ZAR |
Trade Balance |
|
31 March 2023 |
2:30pm |
USD |
Core PCE Price Index m/m |
0.60% |
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
