SA40 Cash Index

The latest SA40 update

-The continued selloff on the SA40 Cash Index has led us to abandon the idea of looking to trade a possible, the criteria for which were highlighted in the Technical Tuesday newsletter (excerpt posted below)

-Instead the short to medium term trend is now confirmed as down as the bearish crossover circled blue indicates (20 day moving average crossing below the 50 day moving average)

-The next downside support targets considered are located at 44035 and 43750

-The index does however remain in oversold territory (highlighted red)

-This is now not considered an opportunity to trade long and against the prevailing downtrend

-Instead, should a rebound from oversold territory occur, we will be looking for short entry opportunities i.e. we are now looking to sell the rallies rather than buy the dips 

SA40 Cash Index – 13 June (Previous)

 

-The aggressive move down has moved the index firmly into oversold territory, and combined with the fact that the index has fallen pretty much in a straight line we do think a short term rebound is possible

-To trade the rebound (should it occur) we prefer to wait for additional confirmation with a price close above both the blue trend line and 45600 level

-In this scenario 46500 provides the favoured upside resistance target while a close below Mondays low would be used as the failure level

-The index moving through the failure level would consider 44035 as the next support target

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.