South Africa 40 Cash Index price at range resistance
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 18 points
South Africa 40 Cash Index
The South Africa 40 Cash Index has produced multiple upside breakouts since our previous note. The move above 67940 saw the initial target at 68515 realised, before a break of this level has produced a move to the 70105 level.
The move higher has moved the index into overbought territory. The outer level of range resistance at 70850 provides a further target, although range traders might be considering closing their long positions somewhere between the 70105 and 70850 levels.
For new long positions, traders might hope to see a break (close) above the 70850 level, followed by a pullback thereafter.
For new short positions, range traders might prefer to see a bearish price reversal around either the 70105, 70550 or 70850 resistance levels, accompanied by a move out of overbought territory.
Should either of these scenarios manifest, we will update our guidance accordingly with targets and failure levels.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying for the week commencing 29 April 2024. The adjustment is currently estimated at 18 points and set for the 30th of April 2024.
South Africa 40 Cash Index (previous)
The long trade scenario from our previous note has manifested with the South Africa 40 Cash Index holding the 66700 level and closing above 67240. The 67940 target has now been realized, with the price currently testing a break of this level. A close above would confirm a break and suggest the 68515 as the next upside resistance target. Traders who are long might consider trailing their respective stops to the midpoint of the 67240 to 67940 range at 67590.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying for the week commencing 22 April 2024.
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