South Africa 40 Cash Index price tests initial resistance target
Traders who are long into the breakout might consider tightening stops to their respective entry points to reduce the risk of the trade
South Africa 40 Cash Index
The breakout criteria for the South Africa 40 Cash Index guided in our previous note (below) confirmed, with a price close above the 68500 level. Since the breakout we have seen a strong move towards the 69760-resistance target.
Traders who are long into the breakout might consider tightening stops to their respective entry points to reduce the risk of the trade, while in search of the 69760-exit target.
Small cash adjustment expected
While considering exits, traders will want to note that the South Africa 40 Cash Index is expected to adjust for a dividend in the underlying, currently expected to be around 16 points. The adjustment will take place late Tuesday afternoon (29th August 2023).
Key data to watch this week
| Date | Time | Region | Event | Previous |
29 August 2023 |
3:00pm |
USD |
S&P/CS Composite-20 HPI y/y |
-1.70% |
29 August 2023 |
4:00pm |
USD |
CB Consumer Confidence |
117 |
29 August 2023 |
|
USD |
JOLTS Job Openings |
9.58M |
30 August 2023 |
All Day |
EUR |
German Prelim CPI m/m |
0.30% |
30 August 2023 |
9:00am |
EUR |
Spanish Flash CPI y/y |
2.30% |
30 August 2023 |
2:15pm |
USD |
ADP Non-Farm Employment Change |
324K |
30 August 2023 |
2:30pm |
USD |
Prelim GDP q/q |
2.40% |
31 August 2023 |
3:30am |
CNY |
Manufacturing PMI |
49.3 |
31 August 2023 |
2:00pm |
ZAR |
Trade Balance |
|
31 August 2023 |
2:30pm |
USD |
Core PCE Price Index m/m |
0.20% |
31 August 2023 |
2:30pm |
USD |
Unemployment Claims |
230K |
1 September 2023 |
2:30pm |
USD |
Average Hourly Earnings m/m |
0.40% |
1 September 2023 |
2:30pm |
USD |
Non-Farm Employment Change |
187K |
1 September 2023 |
2:30pm |
USD |
Unemployment Rate |
3.50% |
1 September 2023 |
4:00pm |
USD |
ISM Manufacturing PMI |
46.4 |
South Africa 40 Cash Index (Previous)
The South Africa 40 Cash Index has now formed a bullish price reversal after making a short term low at 67400. The price reversal is supported by an oversold signal.
Traders might prefer to see some follow through from the reversal with a price close above 68500, before targeting a move towards 69760 initially. In this scenario a close below the low at 67400 might be used as a stop loss indication for the trade.
Large cash adjustment expected.
While considering exits, traders will want to note that the South Africa 40 Cash Index is expected to adjust for a dividend in the underlying, currently expected to be around 41.7 points. The adjustment will take place late Tuesday afternoon (22 August 2023).
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