South Africa 40 Cash Index price extends upside ahead of news heavy week
Traders who have been long into the breakout might consider trailing their respective stop loss levels
South Africa 40 Cash Index
The upside break of the 68515-resistance level has seen continued gains for the South Africa 40 Cash Index. The 70550-resistance level remains the favoured upside target from the move. Traders who have been long into the breakout might consider trailing their respective stop loss levels from a close below the 67940 level to a close below the 68515-support level.
Cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying before market close on Tuesday the 9th of April for an estimated 244.7 points.
Key data this week
Date |
Time |
Region |
Event |
Previous |
10 April 2024 |
2:30pm |
USD |
Core CPI m/m |
0.4% |
10 April 2024 |
2:30pm |
USD |
CPI m/m |
0.4% |
10 April 2024 |
2:30pm |
USD |
CPI y/y |
0.32% |
10 April 2024 |
8:00pm |
USD |
FOMC Meeting Minutes |
|
11 April 2024 |
2:15pm |
EUR |
Main Refinancing Rate |
4.5% |
11 April 2024 |
2:15pm |
EUR |
Monetary Policy Statement |
|
11 April 2024 |
2:30pm |
USD |
Core PPI m/m |
0.3% |
11 April 2024 |
2:30pm |
USD |
PPI m/m |
0.6% |
11 April 2024 |
2:30pm |
USD |
Unemployment Claims |
221K |
11 April 2024 |
2:45pm |
EUR |
ECB Press Conference |
|
11 April 2024 |
7:01pm |
USD |
30-y Bond Auction |
4.33 | 2.5 |
12 April 2024 |
8:00am |
USD |
GDP m/m |
0.2% |
12 April 2024 |
4:00pm |
USD |
Prelim UoM Consumer Sentiment |
79.4 |
South Africa 40 Cash Index (previous)
After a failed reversal off the 68515-resistance level, the price of the South Africa 40 Cash Index is now suggesting an upside break of this level.
A close above 68515 would confirm the breakout suggesting a move towards the 70550-resistance level. In this scenario, a close below the 67940-support level might be used as a stop loss indication.
The suggested upside move does caution with the index now trading firmly in overbought territory. While this does lower the expected probability of a move higher, the upside breakout (should it confirm) would on balance still take precedence over the overbought signal, in lieu of the view that price action supersedes signals from technical indicators.
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