South Africa 40 cash index forms bullish price reversal at support
The index finds support at 84030 with dividend adjustment expected on May 13.
South Africa 40 Cash Index
The South Africa 40 Cash Index looks to have formed a bullish price reversal around the 84030-support level (previous high). The reversal suggests that a very brief pullback from all-time high territory may be over and that short term gains are now resuming in line with the longer-term uptrend still firmly in place.
Overhead resistance suggests an upside target of 87400, while traders who are long might consider using a close below the low at 83400 as a stop loss indication.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of around 54,3 points on Tuesday the 13th of May 2025.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has started to pullback from new high and overbought territory.
Our preference remains that of looking for long entry into the first pullback from each new high. A pullback to one of the labelled support levels above the 78615 level might afford traders such an opportunity.
87400 provides a revised longer term upside target for the index. Aggressive traders who are already long from the break into new high territory might consider using a close below the 82670 support level as a stop loss indication.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 6th of May 2025.
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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