South Africa 40 Cash Index price reversal off support
The South Africa 40 cash Index could be extending its longer-term uptrend after a bullish short term price reversal
The South Africa 40 Cash Index has now formed a bullish price reversal off the 69835-support level. The bullish reversal suggests that the short-term trend is now aligning with the longer-term uptrend. The longer-term uptrend is considered with the price trading above the 200-day simple moving average (200MA) (blue line).
The 73420 high marks the initial resistance target from the bullish reversal. Traders who are long might consider using a close below the black trend line on the chart as a trailing stop loss indication / failure level for the suggested move higher.
Cash Adjustment
The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week.
IG client sentiment
As of Tuesday the 30th of May 2023, the majority (56%) of IG clients with open positions on the South Africa 40 Cash Index expect the price to fall, while 44% of clients with open positions expect the price to rise.
Key macro data this week
| Date | Time | Region | Event | Previous |
|---|---|---|---|---|
30 May 2023 |
4:00pm |
USD |
CB Consumer Confidence |
101.3 |
31 May 2023 |
All Day |
EUR |
German Prelim CPI m/m |
0.40% |
31 May 2023 |
4:00pm |
USD |
JOLTS Job Openings |
9.59M |
1 June 2023 |
2:15pm |
USD |
ADP Non-Farm Employment Change |
296K |
1 June 2023 |
2:30pm |
USD |
Unemployment Claims |
229K |
1 June 2023 |
4:00pm |
USD |
ISM Manufacturing PMI |
47.1 |
2 June 2023 |
2:30pm |
USD |
Average Hourly Earnings m/m |
0.50% |
2 June 2023 |
2:30pm |
USD |
Non-Farm Employment Change |
253K |
2 June 2023 |
2:30pm |
USD |
Unemployment Rate |
3.40% |
In summary:
The South Africa 40 Cash Index has formed a bullish price reversal off support
The long-term trend for the index remains up
73420 provides the initial upside resistance target
The long-term trend line might be used as a trailing stop loss / failure level for the suggested move higher
The majority of IG clients with open positions expect the South Africa 40 Cash Index to fall in the near term
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