SA40 index: update

This week's technical update on the South Africa 40 index.

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).


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