The blue circle on the chart below highlights a candle formation known as a Dark Cloud Cover which is often a precursor to a short-term bearish reversal in price.
The price of the SA40 has started to retrace but the decline now appears to be a short-term consolidation between levels 40550 and 41070.
The first candle after the pattern marks the high and low of the near-term consolidation and the small bodied candles that followed confirm the consolidation by remaining within the high and low of this range.
The long-term upward trend remains in place. Should a downside breakout occur, support at the levels between 39800 and 40015 could provide trend followers with an opportunity to buy the dip of the current uptrend.
Should an upside breakout occur, it would provide another opportunity to join the long-term uptrend favouring an initial target at 41500 (recent high), followed by the channel resistance level at 42400.