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South Africa 40 Cash Index price testing resistance

The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week

Source: Bloomberg
Source: Bloomberg

South Africa 40 Cash Index

Source: IG charts
Source: IG charts

The long trade scenario from our previous note has manifested with the South Africa 40 Cash Index holding the 66700 level and closing above 67240. The 67940 target has now been realized, with the price currently testing a break of this level. A close above would confirm a break and suggest the 68515 as the next upside resistance target. Traders who are long might consider trailing their respective stops to the midpoint of the 67240 to 67940 range at 67590.

No cash adjustment expected

The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying for the week commencing 22 April 2024.

Key data this week

Date

Time

Region

Event

Previous

25 April 2024

2:30pm

USD

Advance GDP q/q

3.4%

25 April 2024

2:30pm

USD

Unemployment Claims

212K

25 April 2024

11:30am

ZAR

PPI MoM

0.5%

25 April 2024

11:30am

ZAR

PPI YoY

4.5%

25 April 2024

4:00pm

USD

Pending Home Sales m/m

1.6%

26 April 2024

Tentative

JPY

BOJ Policy Rate

<0.10%

26 April 2024

Tentative

JPY

Monetary Policy Statement

26 April 2024

Tentative

JPY

BOJ Outlook Report

26 April 2024

Tentative

JPY

BOJ Press Conference

26 April 2024

2:30pm

USD

Core PCE Price Index m/m

0.3%

26 April 2024

4:00pm

USD

Revised UoM Consumer Sentiment

77.9

South Africa 40 Cash Index (previous)

Source: IG charts
Source: IG charts

The South Africa 40 Cash Index has now retraced to the next level of support at 66700.

Long scenario

For renewed gains and to consider a bullish reversal off support, we would like to see the index moving to close above near-term resistance at 67240. In this scenario, 67940 becomes the initial upside resistance target, while a close below the 66700 level would suggest the bullish reversal to have failed.

Short scenario

For continued downside, traders might instead prefer to see a close below support at 66700. In this scenario, 65570 becomes the initial support target, while a close back above the 67240 would suggest the move to have failed.

No cash adjustment expected

The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying for the week commencing 22 April 2024.

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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