SA40 Cash Index

SA40 index moving aggressively towards projected target.

  • Last week we noted 2 long entry points, 1 from the pullback (13 Nov & 14 November Technical Tuesday) and 1 from the flag breakout (17 Nov highlighted below)
  • Traders committed to the long side would be reaping the benefits as the initial target at 54230 has now been realised and the projected flag target at 55350 nears
  • For traders not already committed to the long side, an intraday pullback towards 53980 might be another entry opportunity
  • With the recent upside move we are trailing our failure level (stop loss level) from a close below 52840 to a close below 53350

SA40 CASH INDEX 17 NOVEMBER

1. Trader following this week’s guidance would have found long entry around the short term range support before experiencing a small drawdown

2. Using the failure level at 52840 would have kept you in the trade which would now have moved back into profitable territory

3. What was a range (highlighted blue) turned into a brief pullback in the shape of a bullish flag formation

4. These patterns are considered very bullish and allude to continued gains

5. The price is now breaking out of the pattern giving breakout traders another long opportunity

6. The previous high at 54230 is the initial target favoured, while the bullish flag pattern predicts a further upside target at 55350

7. We continue to use a close below 52840 as the failure level for this set up, but if it gathers momentum will be looking to trail the stop and will update accordingly

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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