South Africa 40 cash index testing all-time highs
South Africa 40 cash index breaking through all-time high resistance level
South Africa 40 Cash Index
The South Africa 40 Cash Index has now rallied to and through all-time high resistance. We currently have a triangle consolidation breakout and are waiting for the breakout of the all-time high to confirm with a close above 81850.
Should the break of the all-time high confirm, the triangle consolidation projects an upside resistance target of 84450, while overhead trendline resistance projects a further target at the 85400 level. Traders who find long entry into the breakout (should it confirm) might consider using a close below 80280 level as a stop loss indication.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index confirmed the bullish setup scenario from our previous note, rallying to just short of the all-time high target at 81850. The price has since corrected, moving towards support at 78775.
The long term trend for the index remains up, while in the short to medium term we assume a range between levels 78775 (support) and 81850 (resistance).
In lieu of the long term uptrend still in place, traders might prefer to keep a long bias to positions.
New long entries might be considered on either a bullish price reversal closer to one of the labelled support levels, or on a break above range resistance at 81850.
Should one of these scenarios 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 167,7 points on Tuesday the 10th of March 2025.
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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