South Africa 40 Cash Index price reversal and weekly outlook
The SA40 Cash Index could be confirming a short term bullish price reversal ahead of news heavy week
The South Africa 40 Cash Index looks to have finally found some interim support at the 66400 level. Marked with the black arrow we see an intraday reversal off the level (hammer). The reversal is supported by an oversold signal and is also just off the 200-day simple moving average (200MA) (blue line).
Ideally, we would like to see some follow through with a positive close on today’s candle. In this scenario, 69240 becomes the initial resistance target from the move, while a close below 66400 might be used as a stop loss indication for traders. A break of 69240, confirmed with a close, would consider 70700 as a further target from the move.
Most IG clients (as of the 17th of March 2023) with open positions on the South Africa 40 Cash Index expect the price to rise in the near term, while 39% of IG clients with open positions expect the price to fall in the near term.
Cash adjustment
Traders of the South Africa 40 Cash Index are reminded that the price will adjust for a dividend in the underlying on Tuesday the 21st of March, currently estimated at around 117 points.
Key data to watch
Over the course of the next week, traders will be mindful of the following macro data releases which have an increased probability of inducing short term market volatility which could reflect on the South Africa 40 Cash Index.
Key scheduled economic data releases in the new week are as follows:
| Date | Time | Region | Event | Previous |
|---|---|---|---|---|
22 March 2023 |
9:00am |
GBP |
CPI y/y |
10.10% |
22 March 2023 |
10:00am |
ZAR |
CPI y/y |
6.90% |
22 March 2023 |
8:00pm |
USD |
FOMC Economic Projections |
|
22 March 2023 |
8:00pm |
USD |
FOMC Statement |
|
22 March 2023 |
8:00pm |
USD |
Federal Funds Rate |
4.75% |
22 March 2023 |
8:30pm |
USD |
FOMC Press Conference |
|
23 March 2023 |
2:00pm |
GBP |
MPC Official Bank Rate Votes |
7-0-2 |
23 March 2023 |
2:00pm |
GBP |
Monetary Policy Summary |
|
23 March 2023 |
2:00pm |
GBP |
Official Bank Rate |
4.00% |
23 March 2023 |
2:30pm |
USD |
Unemployment Claims |
192K |
24 March 2023 |
10:15am |
EUR |
French Flash Services PMI |
53.1 |
24 March 2023 |
10:30am |
EUR |
German Flash Manufacturing PMI |
46.3 |
24 March 2023 |
10:30am |
EUR |
German Flash Services PMI |
50.9 |
24 March 2023 |
11:30am |
GBP |
Flash Manufacturing PMI |
49.3 |
24 March 2023 |
11:30am |
GBP |
Flash Services PMI |
53.5 |
24 March 2023 |
3:45pm |
USD |
Flash Manufacturing PMI |
47.3 |
24 March 2023 |
3:45pm |
USD |
Flash Services PMI |
50.6 |
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.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
