South Africa 40 Cash Index price testing the top of the range
The Top 40 Index price continues to trade within a near term range while the longer-term trend remains up.
The price action of the South Africa 40 Cash Index has remained true to Tuesday’s guidance (Technical Tuesday) in that it has continued to trade within the near-term range between levels 71125 (support) and 72840 (resistance).
The long-term trend and in turn trade bias for the index remains up as the price continues to trade firmly above the 200-day simple moving average (blue line) (200MA) on our chart.
The range trading side of things has been difficult to capitalize on in lieu of the quick movements we have seen between the aforementioned levels. We are however once again testing resistance at 72840 and could be nearing a breakout scenario.
A breakout would be considered on a price close above the 72840-resistance level. In this scenario, 74180 becomes the initial upside target from the move, while a close below 72100 might be used as a stop loss indication for the trade.
Should we not get the upside breakout, we would still be looking for long entries on bullish reversals off support, the initial support level thereto being considered at 71125.
Cash adjustment / dividend
There is no cash adjustment expected on the South Africa 40 Cash Index in the upcoming week (commencing 15 May 2023).
IG client sentiment
As of 2pm on Friday the 12th of May 2023, the majority (79%) of IG clients with open positions on the South Africa 40 Cash Index expect the price to fall, while 21% of clients with open positions expect the price to rise.
Key Data to watch
The week ahead sees a relatively light domestic calendar in terms of scheduled high impact data, although the unemployment rate print on Tuesday will be closely monitored.
On the international front, US retail sales data on Tuesday and Fed Chair Jerome Powell’s commentary on Friday afternoon, are likely to be amongst the higher risk events for global markets in the week.
A calendar of scheduled economic data points for the week is as follows:
| Date | Time | Region | Event | Previous |
|---|---|---|---|---|
15 May 2023 |
2:30pm |
USD |
Empire State Manufacturing Index |
10.8 |
16 May 2023 |
8:00am |
GBP |
Claimant Count Change |
28.2k |
16 May 2023 |
11:30am |
ZAR |
Unemployment Rate |
32.7% |
16 May 2023 |
2:30pm |
USD |
Core Retail Sales m/m |
-0.80% |
16 May 2023 |
1:00pm |
ZAR |
Retail Sales m/m |
-1.00% |
17 May 2023 |
11:50am |
GBP |
BoE Gov Bailey Speaks |
|
18 May 2023 |
2:30pm |
USD |
Unemployment Claims |
264k |
19 May 2023 |
5:00pm |
USD |
Fed Chair Powell Speaks |
|
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
