The South Africa 40 cash index confirmed a breakout of the 47410 resistance, although has not yet succeeded in reaching the trend line resistance target alluded to last week. The price looks to be in a short term consolidation at present as it pauses from the recent run up.
The Stochastic is in overbought territory, although this is not a signal to trade against the long term uptrend. In an uptrend, overbought signals can persist for quite some time and are perhaps more reliable a signal for exiting a long trade rather than trading counter trend. Trend remains more relevant than the momentum indication and the trendline resistance target has been revised up to 48500.
Aggressive long entry would consider the 47410 level perhaps providing leeway to 47400. A more conservative trading approach may be to wait for overbought conditions to subside which can occur if the price continues to consolidate sideways.
Should weakness start to play out long entry might also be considered at 46700 support with the initial target a retest of 47410 resistance. A close below trendline support at 46300 would be considered as a failure level for the above.