South Africa 40 Cash Index swing trade set up and dividend reminder
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South Africa 40 Cash Index
The South Africa 40 Cash Index traded through the 74080 resistance target reaching a high of 74420 before undergoing a minor retracement from overbought territory.
The retracement looks to have ended with the bullish price reversal circled blue. Swing traders might now consider new long positions in line with the longer term uptrend. 74420 and 75350 become further upside resistance targets from the move. A close below the 72185 support level is used as a stop or failure level for the bullish suggestion.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying currently estimated at 58.4 points on the 25th of June 2024.
South Africa 40 Cash Index (previous)
The bullish price reversal we were waiting for on the South Africa 40 Cash Index confirmed off the 69400-support level. The reversal was supported by a sharp move out of oversold territory and has seen the price of the index trading through the 70850 and 72185 resistance levels. The high at 74080 provides the next upside resistance target from the move.
Traders fortunate to have caught the initial move higher might consider trailing their respective stops to a close below the halfway mark of the current long bodied candle at roughly 71900.
Traders who have missed the initial move higher might hope for the first pullback for a new long entry opportunity, before targeting a retest of the high at 74080.
Small cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying currently estimated at 24 points on the 18th of June 2024.
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