South Africa 40 Cash Index slowly withdrawing from all-time price highs
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 164.6 points on Tuesday the 8th of October 2024.
South Africa 40 Cash Index
Since the bearish price reversal (circled red) highlighted in our previous note, the South Africa 40 Cash Index has slowly started to correct from all-time high and overbought territory
The long term trend remains up for the index. As such trend followers will still look to keeping a long bias to positions on the index.
For long entry a bullish price reversal off one of the labelled support levels on our chart, or a close above the dotted trend line might provide the next opportunity.
In a bullish reversal scenario, traders might look to using a close below the reversal low as a stop loss consideration. Should the price break above the dotted trend line before reaching support at 77600, a close below the 77600 level might be used as a stop loss indication.
Overhead resistance at 80485 provides the longer term price target for the index.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 164.6 points on Tuesday the 8th of October 2024.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has traded through our short-term targets and reached the overhead trendline resistance level of 79800. Circled red we see a bearish price reversal has now formed while the price of the index is in overbought territory. The reversal suggests that traders who have been long into the move higher might look to exit their positions at current levels while waiting for a new opportunity to emerge.
Trend followers will once again consider waiting for short term weakness to play out and end with a bullish price reversal, preferably around one of the labelled support levels, before looking for long entry once again.
Should this scenario manifest, we will update guidance accordingly with targets and failure levels.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 27.7 points on Tuesday the 1st of October 2024.
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