South Africa 40 Cash Index update and dividend notification
The South Africa 40 Cash Index price rally has moved the index further into overbought territory.
Circled blue we saw the bullish reversal we were looking for on the South Africa 40 Cash Index confirmed, before the price continued to trade through the 71670 target and make an attempt on the next level of resistance at 72840.
The long-term trend remains up, although the short term move higher has pushed the index further into overbought territory.
Trend continues to take precedence over the overbought indication, although the overbought signal does prompt tightening the stop loss level higher than the 69835 level previously guided.
Traders who are long might now consider using a close below the 71125 level as a new stop loss indication for the trade, while searching for a move to test the 72840-resistance target.
Should the price manage to close above this level, 74180 would become the next upside resistance target favoured and we would again look to trail our stop loss level higher.
Cash Adjustment
The South Africa 40 Cash Index will see a cash adjustment on Tuesday afternoon in lieu of a dividend in the underlying. The dividend adjustment is currently estimated at 83 points.
Key data to watch
The new week hosts a number of data points capable of inducing significant market volatility for our local index. Of notable importance to short term traders are the US inflation (CPI) and FOMC meeting minutes scheduled for Wednesday the 12th of April.
| Date | Time | Region | Event | Previous |
|---|---|---|---|---|
12 April 2023 |
2:30pm |
USD |
CPI m/m |
0.40% |
12 April 2023 |
2:30pm |
USD |
CPI y/y |
6.00% |
12 April 2023 |
2:30pm |
USD |
Core CPI m/m |
0.50% |
12 April 2023 |
3:00pm |
GBP |
BoE Gov Bailey Speaks |
|
12 April 2023 |
8:00pm |
USD |
FOMC Meeting Minutes |
|
13 April 2023 |
8:00am |
GBP |
GDP m/m |
0.30% |
13 April 2023 |
11:30am |
ZAR |
Mining Production and Sales |
-1.90% |
13 April 2023 |
2:30pm |
USD |
Core PPI m/m |
0.00% |
13 April 2023 |
2:30pm |
USD |
PPI m/m |
-0.10% |
13 April 2023 |
2:30pm |
USD |
Unemployment Claims |
|
14 April 2023 |
2:30pm |
USD |
Core Retail Sales m/m |
-0.10% |
14 April 2023 |
2:30pm |
USD |
Retail Sales m/m |
-0.40% |
14 April 2023 |
4:00pm |
USD |
Prelim UoM Consumer Sentiment |
62 |
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