South Africa 40 Index price reversal in oversold territory
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 5th of November 2024.
South Africa 40 Cash Index
Circled red we see a bullish price reversal off the 77050-support level. The bullish reversal is supported by a move out of oversold territory. The reversal suggests short term direction to be aligning with the long-term uptrend.
80075 becomes the initial upside resistance target, while a close below the 77050 might be used as a stop loss indication.
The current price setup does however come during US elections which cautions short term risk and volatility in markets.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 5th of November 2024.
South Africa 40 Cash Index (previous)
The bearish price reversal on the South Africa 40 Cash Index, highlighted in our previous note resulted in a marginal decline, before losses were recouped and the 80075 level retested once again.
The long-term uptrend remains firmly intact and as such a long bias to trades remains preferred. However, the price is currently trading close to resistance at 80075.
For new long positions, traders might prefer to see the price break resistance with a close above the 80075 level, before targeting a move towards our upwardly revised trend line resistance target of 81600. In this scenario, a close below a one- or two-day low might be used as a stop loss indication.
Should the price instead fail to break the 80075 resistance level and start to retrace, trend followers might prefer to wait out weakness, looking for long entry on a bullish price reversal closer to one of the labelled levels of support.
Should either of these scenarios manifest we will update guidance accordingly.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 28th of October 2024.
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