South Africa 40 Cash Index renews uptrend
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 29.4 points
South Africa 40 Cash Index
The South Africa 40 Cash Index has managed to produce the close above 74420 (red arrow) and is now extending gains suggested from the oversold and divergence signals highlighted previously.
75830 provides the initial upside resistance target from the move, while traders might consider having a stop loss situated at a close below the two day low.
The relatively tight stop loss considers key central bank meetings this week and their propensity to induce short term volatility.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 29.4 points on Tuesday the 17th of September 2024.
South Africa 40 Cash Index - Previous
The South Africa 40 Cash Index looks to have found support at the 73395 level. The long term uptrend remains intact and the recent move lower suggests a short term correction of this trend.
Circled blue we see a bullish candlestick price reversal off the 73395 level. This suggests an end to the short term correction and possibly renewed gains to follow.
For new long positions we would like to see some momentum following the price reversal, with a close above the 74420 level. Should this scenario confirm, 75830 becomes the initial resistance target from the move, while a close below the 73395 level might be used as a stop loss indication.
Should the price not manage to close above the 74420 level and confirm our long entry requirement, we will continue to wait for new long entry opportunities in line with the uptrend still firmly in place.
Adding to the bullish short term view, the dotted blue lines on the price and the stochastic are showing a positive divergence from oversold territory.
Large cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 324.9 points on Tuesday the 10th of September 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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