The South Africa 40 index closed marginally below the low of our range (red dotted line), only to close back above the level the next day.
The downside breakout of our range has failed, and the height of the range has now been extended to accommodate the new lows created over the week. Support of the range is now considered at 42200 with resistance remaining at 43100. The price is now testing the aforementioned resistance of the range, while the long-term trend remains up.
Trend followers and breakout traders would be waiting for the price to close above the 43100 level, with the next resistance target considered at 43500 (upper trend line from broadening formation). The height of the range (900 points) projected would provide a further target should a upside breakout occur at 44000.
Range traders would be weary of shorting off resistance in light of the long-term trend remaining up, but would rather wait for a long entry should the price retrace off resistance.