South Africa 40 Cash Index: price target hit, now testing resistance
The South Africa 40 Cash Index remains in a broad sideways trend, considered conducive for range trading.
South Africa 40 Cash Index update - 14 July 2023
The break out scenario above the 69760 level (guided in the Technical Tuesday as below) yielded a fast move to the 71125 resistance level. The price of the South Africa 40 Cash Index then extended gains to the 72370 level where it is currently finding resistance whilst in overbought territory.
Traders who were long into the move, trading between the levels would now have exited long positions awaiting the next opportunity to manifest.
The index remains in a broad range trading environment and in turn we are looking for reversals of levels and breakouts for new positions.
For new long positions traders might look for a close above 72370 before targeting a move towards the 74180 level. In this scenario, traders might consider using a close below the 71125 level as a stop loss indication.
For new short positions traders might instead look for a close below the 71125 level before targeting a move back towards 69760 initially. In this scenario, a close above the 72370 level might be used as a stop loss indication.
South Africa 40 Cash Index - 11 July 2023
The South Africa 40 Cash Index produced the suggested bearish reversal off the 200MA (blue line) and 71125 resistance levels, before moving back towards the 68500-support target.
The price of the index now trades within a near term range between levels 68500 (support) and 71125 (resistance).
The long-term trend is now deemed sideways and in lieu we are looking for trade opportunities in either direction.
Traders might consider long entry on a close above the 69760 level before targeting a retest of the 71125 level. In this scenario, a close below the one or two day low (depending on risk threshold) might be used as a stop loss indication for the trade.
A close below 68500 might instead consider short entry, with 66450 the next support target considered. In this scenario, a close above the 69760 level might be used as an initial stop loss indication for the trade.
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