The South Africa 40 cash index broke the 46500 support last week and traded through the 45925 level. The price has since rebounded to find resistance on what was previous support at 46500. The 45925 level has now been removed as it appears to have lost its relevance.
The price activity highlighted in red looks ambiguous as it may be a bullish reversal or consolidation (between levels 45550 and 46500). As the underlying trend (long-term) remains bullish, while the Stochastic has started to move back out of oversold territory, a long bias remains favoured in either scenario.
Breakout traders could wait for a close above resistance at 46500 before anticipating a retest of the 47410 level. Range traders might look to accumulate near support at 45550 (should weakness occur) anticipating a move back to the 46500 level, with a close below 45100 as a possible failure level.