Technical Tuesday
Receive expert weekly trading analysis covering:
The outlook for the South Africa 40 Cash Index, Gold, Oil and the Rand
Breakout, trend following and pair trading opportunities on local and international shares
Entry levels, target prices and failure levels
Call 010 500 8624 or email newaccounts.za@ig.com to talk about opening a trading account. We're around 24 hours a day from 9am Saturday to 11pm Friday.
Contact us: 010 500 8624
Call 010 500 8624 or email newaccounts.za@ig.com to talk about opening a trading account. We're around 24 hours a day from 9am Saturday to 11pm Friday.
Contact us: 010 500 8624
19 November 2024
In the report this week, we look at the following markets:
- South Africa 40 Cash Index
- USD/ZAR
- Spot Gold
- Brent Crude Oil
- AngloGold Ashanti vs Newgold Issuer
South Africa 40 Cash Index
The South Africa 40 Cash Index has formed a bullish price reversal off the 75830 support level. The bullish reversal is accompanied by a move out of oversold territory. 77050, 78450 and 80075 provide upside resistance targets from the reversal, while a close below 75830 would suggest the reversal to have failed.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 19th of November 2024.
USD/ZAR
The USD/ZAR reached a high of 18.40 before forming a bearish price reversal (circled red). The reversal sees the USD/ZAR undergoing its first pullback since the upside breakout.
Breakout traders might look to see where the price settles before looking for new long positions into the currency pair. New entries might be considered on a bullish price reversal off the 17.70 level or on a close above the 18.00 level.
Should one of these scenarios manifest we will update guidance accordingly with targets and failure levels.
Spot Gold
The price of gold has now formed a bullish price reversal off the 2530 support level. The reversal is accompanied by a move out of oversold territory. 2685 and 2790 provide upside resistance targets from the reversal, while a close below the low at 2530 would instead suggest the reversal to have failed.
Brent Crude Oil
The price of brent crude oil has formed a bullish price reversal off the 70.00 support level and moved to close above resistance at 72.50. 75.60 become the next upside target from the move. Traders who are long might consider using a close below the 70.00 support level as a stop loss indication.
AngloGold Ashanti vs Newgold Issuer
The pair considers a Long AngloGold position against a Short Newgold position. The net result of these combined trades looks for a 13.3% profit margin. A stop loss is considered of equal proportion to the expected gain.
A successful pair trade can be realized 1 of 3 ways:
1. The long position rises while the short position falls
2. The long position rises faster than the short position rises
3. The short position falls faster than the long position falls.
The blue line on the chart represents the Anglo / Newgold ratio which recently traded more than 2 standard deviations below the mean (middle line). A successful trade would require the ratio (blue line) to return to the mean to meet the guided profit target.
Get full report
For the full report, which adds trade opportunities on local and international shares, click the link below
Get full report
For the full report, which adds trade opportunities on local and international shares, click the link below
Shaun Murison
Our weekly technical report is compiled by in-house senior market analyst, Shaun Murison.
Shaun has worked in financial markets for over ten years. As market analyst, he presents our CFD trading seminars around the country. In addition, Shaun is a regular commentator on the local financial markets, contributing to various media (such as CNBC Africa and Business Day) and writing daily and weekly market reports. He is a registered person at the JSE as well as a Certified Financial Technician (CFTE). You can follow Shaun on Twitter at @ShaunMurison_IG for regular market updates and insight.
Latest news
IG provides an execution-only service. This material does not contain (and should not be construed as containing) investment advice or an investment recommendation, or 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 the above information. Consequently any person acting on it does so entirely at his or her own risk. The research 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. This communication must not be reproduced or further distributed. 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.
Contact us
Interested in opening an account?
Contact 010 500 8624 or
Want to check on your application's progress? Email
Clients: Help and support
WhatsApp: Click here
IG | Sitemap | Terms and agreements| FAIS | Privacy | IG Community | About IG | Cookies
