Last week’s rebound on the South Africa 40 cash index lost its momentum, and the price instead consolidated around the key level of 43750. The green and red arrows show how the price has been closing above and below the level and previously non-committal to a direction.
Today’s price action marked with the black arrow does however show directional commitment, to the downside. The 43750 level is now considered a possible resistance level, while the recent low at 42340 becomes the anticipated (and favoured) support target.
Should this support level break, the next levels of support are considered at 41370 and 40850. For the short-term bias to reverse to bullish we would need the price to start trading above our key level (43750) once again.