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- In The SA40 Cash Index has traded to the initial downside target (horizontal red line) and made a good attempt towards the 43500 target (43744 realised)
- The index has now formed a bullish engulfing candle pattern circled red
- The pattern highlights the end of the short term move and possible reversal to follow
- We think the initial short trade suggestion has now completed with the reversal and wait for the next trading opportunity
- The trend bias remains negative and a bearish candle reversal before 45000 favours the initiation of a new short position
- However if instead we see a close above 45000 on the current move up, a bullish chart reversal in the form of a Double Bottom would have occurred and we will look to initiate long positions instead