South Africa 40 update and dividend reminder for Monday

The South Africa 40 Cash Index has produced a bearish reversal off the 67940-resistance level

Source: Bloomberg

Forex United States dollar Pound sterling South Africa Euro Market trend

Written by: Shaun Murison | Senior Market Analyst, Johannesburg

Publication date: 2024-03-18T10:55:39+0000

South Africa 40 Cash Index

Source: IG charts

The South Africa 40 Cash Index has produced a bearish reversal off the 67940-resistance level and gone on to break (close) below support at 66900.

The reversal and downside support break suggest some further downside, with 65570 the initial support target. Traders who are short might consider using a close above the current intraday high at 67270 as a stop loss / failure indication.

Cash adjustment expected (Monday not Tuesday)

The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying before market close on Monday the 18th of March for an estimated 75 points.

Key data releases this week (local & international)

Date	Time	Region	Event	Previous
18 March 2024	4:00am	CNY	Industrial Production y/y	6.8%
19 March 2024	Tentative	JPY	Monetary Policy Statement
19 March 2024	Tentative	JPY	BOJ Press Conference
20 March 2024	9:00am	GBP	CPI y/y	4.0%
20 March 2024	8:00pm	USD	Federal Funds Rate	5.50%
20 March 2024	8:00pm	USD	FOMC Economic Projections
20 March 2024	8:00pm	USD	FOMC Statement
20 March 2024	8:30pm	USD	FOMC Press Conference
20 March 2024	10:00am	ZAR	Inflation Rate MoM	0.10%
20 March 2024	10:00am	ZAR	Inflation Rate YoY	5.30%
21 March 2024	10:15am	EUR	French Flash Manufacturing PMI	47.1
21 March 2024	10:15am	EUR	French Flash Services PMI	48.4
21 March 2024	10:30am	EUR	German Flash Manufacturing PMI	42.5
21 March 2024	10:30am	EUR	German Flash Services PMI	48.3
21 March 2024	11:30am	GBP	Flash Manufacturing PMI	47.5
21 March 2024	11:30am	GBP	Flash Services PMI	53.8
21 March 2024	2:00pm	GBP	Monetary Policy Summary
21 March 2024	2:00pm	GBP	MPC Official Bank Rate Votes	2-1-6
21 March 2024	2:00pm	GBP	Official Bank Rate	5.25%
21 March 2024	2:30pm	USD	Unemployment Claims	209K
21 March 2024	3:45pm	USD	Flash Manufacturing PMI	52.2
21 March 2024	3:45pm	USD	Flash Services PMI	52.3
22 March 2024	9:00am	GBP	Retail Sales m/m	3.40%

South Africa 40 Cash Index (previous)

Source: IG charts

The South Africa 40 Cash Index traded roughly 500 points short of the downside support target from last week, before rallying back to close above the 66900-failure level.

Currently we see the index finding resistance at the 67940 level.

We do have a bearish intraday reversal forming off this level although not yet completed (with a lower close). A bearish reversal off resistance would be confirmed with a close back below the 66900-support level. In this scenario, the closing low at 65570 might provide the next downside support target, while a close back above the 67940 level might be used as a failure indication for the short trade suggestion.

Cash adjustment expected

The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying before market close on Tuesday the 12th of March for an estimated 196.8 points.

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.

Live prices on most popular markets

Forex
Shares
Indices

See more forex live prices

See more shares live prices

See more indices live prices

Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

<h3>How much does trading cost?</h3>

<h3>Find out about IG</h3>

<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Contact us

Interested in opening an account?

Contact 010 500 8624 or

newaccounts.za@ig.com

Want to check on your application's progress? Email

newaccounts.za@ig.com

Clients: Help and support

WhatsApp: Click here

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

IG is a trading name of IG Markets Limited and IG Markets South Africa Limited. IG Markets South Africa Limited offers domestic accounts and IG Markets Limited offers international accounts.

IG Markets South Africa Limited is authorised and regulated by the Financial Sector Conduct Authority (in South Africa) as an over-the-counter derivative provider and an authorised financial services provider (FSP No 41393). IG Markets Limited is authorised and regulated by the Financial Conduct Authority (in the UK).

IG provides execution only services and enters into principal-to-principal transactions with its clients on IG’s prices. Such trades are not on exchange. Whilst IG Markets South Africa Limited is a regulated FSP and acts as an intermediary as understood in the FAIS Act in relation to the international accounts offered by IG Markets Limited, CFDs issued by IG are not regulated by the FAIS Act as they are undertaken on a principal-to-principal basis. CFDs issued by IG Markets South Africa Limited are regulated by the Financial Markets Act, and IG Markets South Africa Limited is a licenced over-the-counter derivative provider.

South African residents are required to obtain the necessary tax clearance certificates in order to utilise their foreign investment allowance should the South African resident wish to open an international account with IG Markets Limited.

The information on this site is not directed at residents of the United States or Belgium or any particular country outside South Africa and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Voted SA’s top CFD provider in Business Day Investors Monthly Annual Stockbroker Awards in 2012, best platform for Active Day Traders in 2013 and 2014, SA's best Online Broker in 2015 and 2017 and SA's best CFD provider in 2020 as well as SA's Top CFD Broker in 2021.

IG Group | Careers | Marketing partnership

South Africa 40 update and dividend reminder for Monday

South Africa 40 Cash Index

Key data releases this week (local & international)

South Africa 40 Cash Index (previous)

Live prices on most popular markets

Plan your trading week

You might be interested in…

Markets

CFD trading

Trading platforms

IG analysis

Contact us