South Africa 40 Cash Index price awaits FOMC meeting minutes
The bullish reversal highlighted in our previous note has petered out with the South Africa 40 Cash Index drifting back wo the 58000-support level.
This level becomes key in the short term and whether it holds, or breaks will likely be determined by Wednesday evenings Federal Open Market Committee (FOMC) meeting minutes.
In the event that the minutes are hawkish, and we see a close below the 58000 support level, the range between and 56700 and 55825 become the next downside targets from the move. It is around these levels we would be looking for a bullish price reversal for long entry.
Should the index hold the 58000-support level and produce a close above the red dotted trend line on our chart we would also be looking to find long entry into the move.
Should either of these scenarios manifest we will update our guidance accordingly with targets and stop loss levels.
Cash adjustment
Traders of the South Africa 40 Cash Index will also want to note that the index is set to adjust (on Tuesday the 11th of October) for a dividend in the underlying, currently estimated at 154.6 points.
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