The South Africa 40 cash index has realized the target from the double bottom reversal pattern and confirmed the validity of the inverse head and shoulders formation (Marked L,H & R). The upside target projected from the inverse head and shoulders formation is considered at 46500.
The candles circled red, warn of a possible short-term pullback, which if occurs, considers short-term support between levels 43700 and 43925. Should this support area be broken it would consider the weakening of the current move upwards. The upside remains favoured, with 46500 the projected target, and should a short-term pullback occur it may afford long entry opportunity for breakout traders who missed the initial move.