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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

South Africa 40 Cash Index: look ahead

The South Africa 40 cash Index is extending gains although trades deep within overbought territory.

Source: Bloomberg
Source: IG Charts

The South Africa 40 Cash Index has continued to gain and now break through the 72840-resistance target. Gains are now being extended with 74180 the next upside target favoured from the move.

Traders who have continued to back long positions in line with the longer-term uptrend in place might consider trailing their respective stop losses to (a close below) the 72840 level. Alternatively trailing a stop with the dotted black trend line on our chart might be a consideration as well.

The stop loss level is now tracked quite tightly to the price as we now trade in overbought territory for an extended juration. As mentioned previously, the overbought signal is not considered an indication to trade against the prevailing trend although does caution trade at this point.

Cash adjustment / dividend

The South Africa 40 Cash Index is expected to undergo a cash adjustment estimated at 59.5 points in line with the underlying index dividend on Tuesday the 18th of April 2023 (close of JSE).

Client Sentiment

Source: IG
Source: IG

As of Tuesday the 18th of April 2023, the majority (85%) of IG clients with open positions on the South Africa 40 Cash Index expect the price to fall, while 15% of clients with open positions expect the price to rise.

Key macro data this week

Date Time Region Event Previous

19 April 2023

8:00am

GBP

CPI y/y

10.40%

19 April 2023

1:00pm

ZAR

Retail Sales y/y

-0.80%

20 April 2023

2:30pm

USD

Unemployment Claims

239K

21 April 2023

9:15am

EUR

French Flash Manufacturing PMI

47.3

21 April 2023

9:15am

EUR

French Flash Services PMI

53.9

21 April 2023

9:30am

EUR

German Flash Manufacturing PMI

44.7

21 April 2023

9:30am

EUR

German Flash Services PMI

53.7

21 April 2023

10:30am

GBP

Flash Manufacturing PMI

47.9

21 April 2023

10:30am

GBP

Flash Services PMI

52.9

21 April 2023

3:45pm

USD

Flash Manufacturing PMI

49.2

21 April 2023

3:45pm

USD

Flash Services PMI

52.6

Upcoming local company news

Start Date Company Name Event Type

19 April 2023

Zeder Investments Ltd

Earnings Releases

19 April 2023

Absa Group Ltd

Ex-Dividends

19 April 2023

ADvTECH Ltd

Ex-Dividends

19 April 2023

Bell Equipment Ltd

Ex-Dividends

19 April 2023

Brimstone Investment Corporation Ltd

Ex-Dividends

19 April 2023

Remgro Ltd

Ex-Dividends

19 April 2023

South Ocean Holdings Ltd

Ex-Dividends

19 April 2023

TeleMasters Holdings Ltd

Ex-Dividends

19 April 2023

Resilient REIT Ltd

Ex-Dividends

19 April 2023

CoreShares Index Tracker Managers (RF) Pty Ltd

Ex-Dividends

19 April 2023

Absa Bank Ltd

Ex-Dividends

19 April 2023

Thungela Resources Ltd

Ex-Dividends

20 April 2023

Clicks Group Ltd

Earnings Releases

21 April 2023

Standard Bank Group Ltd

Sales/Trading Stmt Releases

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.

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