South Africa 40 cash index price consolidates at all-time highs
The index has paused in new high territory, but remains in overbought territory
South Africa 40 Cash Index
The bearish reversal off resistance highlighted in our previous note has failed with the price now having produced a break above the previous all-time high at 83420.
The price of the index has however muddled along sideways since producing the breakout, questioning the upward momentum as we continue to trade deep within overbought territory.
Nevertheless, our preference remains to find 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 should a pullback occur.
Aggressive traders might however consider a move above the 84030 level as a show of momentum and a long entry opportunity as well.
Should either of these scenarios manifest we will update guidance accordingly with targets and failure levels.
No cash adjustment expected
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying on Tuesday the 29th of April 2025.
South Africa 40 Cash Index (previous)
Technically speaking we have had a bearish price reversal (circled blue) off of all time high resistance and from overbought territory. While the price is dangerously close to breaking our stop level (a close above 83420), the reversal remains relevant for now and suggests 79340 to be the support target from the move.
Small cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 170,8 points on Tuesday the 22nd of April 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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