South Africa 40 Cash Index price trying to reverse off support
The price is now in oversold territory and attempting to form a bullish price reversal off the 70850-support level
South Africa 40 Cash Index
The South Africa 40 Cash Index has continued to retrace in a risk off global market environment and through the local elections.
The price is now in oversold territory and attempting to form a bullish price reversal off the 70850-support level. A bullish reversal would be considered if the current candle manages to close closer to the high of the session that the low. In this scenario, a short term resumption of the longer term uptrend would be considered, with 72185 the initial upside resistance target. A close below the reversal low (should the bullish reversal confirm) at 69400 might be used as a stop loss consideration.
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 3rd of June 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has started to pullback from resistance and overbought territory. The long-term trend for the index remains up suggesting trend followers keep a long bias to trades despite the near-term correction.
For long entry, traders might look for a close above the red trendline on the chart before targeting a move towards the 74080 level. In this scenario, a close below the short-term low of the current correction might be used as a stop loss indication.
Should the price instead continue to drift lower, trend followers might hope to see a bullish price reversal closer to the 70850-support level for long entry. Should this scenario manifest, 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 27 May 2024.
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