The 43000 and 42480 levels represent the high and low from our candle marked with a blue arrow. Although there have been intraday breaches of the high of this candle, the price has failed to close above it. The low of this candle has been tested but not yet breached.
With the above considerations in mind the price action of the SA40 index is considered to be in a short-term period of non-directional movement i.e. a sideways range. The 43100 level represents the intraday breaches of the aforementioned candles high and is now considered resistance. The range is therefore considered between support at 42480 and resistance at 43100.
Range traders would look for a long entry off support with a target considered just below the resistance level. A price close below the support would consider failure of this a range trade off support. Breakout traders would look for a close above resistance for possible entry, with a further upside target equal to the height of the range 620 points (43100 – 42480).
A break of support could trigger a short entry for breakout traders with the same 620 point target. However this scenario would carry an elevated degree of risk as it is contrary to the long-term trend which is still considered as up.