South Africa 40 Cash Index watch for Fed Meeting and cash adjustment this week
Traders of the South Africa 40 Cash index will want to note that the index is set to adjust on Tuesday 16 August for a relatively large dividend in the underlying, currently estimated at 245.4 points.
The South Africa 40 Cash Index remains in a broad range trading environment over the medium term, between levels 58000 (support) and 65600 (resistance).
In the shorter term we have seen an upside break of the smaller range (shaded grey). The breakout has seen follow through with the bullish continuation candle pattern circled red.
The price is pulling back from the near term high.
While the longer term direction is undecided right now, the short term momentum appears to be up. Traders of this short term momentum might look for long entry on a pullback towards trendline support at 63500, targeting a move back towards the high at 64750 and possibly range resistance at 65600. However, should the current pullback take us back below the 63070, the bullish momentum we have highlighted would be deemed to have failed.
Cash adjustment
Traders of the South Africa 40 Cash index will want to note that the index is set to adjust (on Tuesday 16 August) for a relatively large dividend in the underlying, currently estimated at 245.4 points.
Fed Meeting minutes
Traders will also need to be mindful of the Federal Open Market Committee (FOMC) meeting minutes scheduled for release on Wednesday evening. The FOMC minutes guide towards the outlook of US monetary policy and has the potential to move global markets and in turn our local bourse.
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
