This information has been prepared by IG, a trading name of IG Markets 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.
The South Africa 40 index has respected the rising wedge (red lines) implied indications and traded towards the initial support area between 39000 and 38750.
The 38750 level remains a key level and should it not be upheld, the ultimate target from the wedge pattern between levels 37700 and 37500 is favoured.
The current move lower supports a short-term correction in a long-term trend which remains up as deemed by the price still trading firmly above the 200 day simple moving average (blue line).