South Africa 40 forecast and dividend reminder
The initial breakout and the bearish price reversal suggest further downside
South Africa 40 Cash Index
The South Africa 40 Cash Index has gone on to produce a downside break of the 66250 level before rebounding, and then finding resistance on the 66900 range mid-point.
It is from this point we see a bearish price reversal (circled black). The initial breakout and the bearish price reversal suggest further downside with 65040 the next support target from the move. Traders who are short might consider using a close above the 66900 level as a failure indication.
No 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 5th of March for an estimated 50.2 points.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index’s bullish reversal off support (circled black) saw a sharp move to the 67430-resistance target.
The price also produced an upside break of the 67430 level, although is currently pulling back and testing the previously guided stop level at 66900. A close below this level would confirm the initial breakout to have failed and suggest a move back towards the 66250-support level.
Traders looking for new long positions might hope to see a bullish price reversal above or off the 66900 level to end the current pullback or alternatively on a bullish reversal closer to the 66250 level. In both these scenarios, a close below the reversal low might be used as a stop loss indication, while in search of a move towards 68515.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week.
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