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
10 December 2024
In the report this week, we look at the following markets:
- South Africa 40 Cash Index
- USD/ZAR
- Spot Gold
- Brent Crude Oil
- Nedbank Group vs ABSA Group ltd
South Africa 40 Cash Index
The South Africa 40 Cash Index has made a good attempt at the 80075 target following the break above the 77050 level. The price has however started to form a bearish price reversal from overbought territory (blue circles). The overbought and reversal signals suggest that traders who have been long into the push higher, might look to exit their respective long trades at current levels.
The long term trend for the index remains up, as such we continue to prefer looking for long positions into short term corrections of this trend.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 44,7 points on Tuesday the 10th of December 2024.
USD/ZAR
The USD/ZAR move higher has failed with the price now having broken support at 17.90. The price is now finding support at the 17.70 level.
Should the price break (close) below the 17.70 level, 17.50 becomes the next support target considered.
Should the price instead manage to hold the 17.70 level and close back above resistance at 17.90, new long positions might be considered with 18.20 the initial target. In this scenario a close below the 17.70 level might be used as a stop loss consideration.
Spot Gold
The long term trend for gold is considered up, although in the near term the price trades in a rangebound fashion between levels 2600 and 2685.
Traders respecting the longer term uptrend might continue to look for long entry on a bullish price reversal off one of the labelled levels of support or a break of resistance at 2685.
Should either scenario manifest we will update guidance accordingly with targets and failure levels.
Brent Crude Oil
The price of brent crude oil looks to have formed a bullish price reversal just above range support at 70.00. The reversal is accompanied by a move out of oversold territory. 72.50 becomes the initial resistance target from the move, while a close below the 70.00 level might be used as a stop loss consideration.
Nedbank Group vs ABSA Group Ltd
The pair considers a Long Nedbank position against a Short ABSA position. The net result of these combined trades looks for a 10.5% 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:
The long position rises while the short position falls
The long position rises faster than the short position rises
The short position falls faster than the long position falls.
The blue line on the chart represents the Nedbank / ABSA 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
-
Why is the Fed's hawkish cut unsettling AUD/USD, EUR/USD, GBP/USD and USD/JPY?
2024-12-19T10:37:38+0000
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
