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SA40 attempts to break short-term downtrend

The SA40 index formed a bullish engulfing reversal candle and attempted to break the short-term downtrend

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It would appear this short-term bullish reversal has failed as the price is now trading below the trend line once again

The price of the South Africa 40 index is now continuing to trade towards our horizontal support between levels 39000 and 38850

A break of which favours a move towards our critical major low support between levels 38250 and 38050

The long-term trend remains up, but should these lower levels be breached, the long-term uptrend would start to be questioned

For a commitment to the resumption of the short-term uptrend, a break above the recent turning point at 40300 is needed as it would mark a series of significant higher highs

SA40 04122013

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