SA40 cash index

  • Circled black we see that the SA40 Cash Index has produced another bearish reversal (dark cloud cover) before the 46500 level
  • We had a similar reversal signal (marked red) fail recently, marked with the red arrow
  • We hope that the current reversal signal carries more credence as it is supported by the stochastic crossing out of overbought territory
  • These signals suggest the medium term downtrend is now being continued
  • 44900 is the initial downside target favoured from the reversal signals
  • Should the price instead move to close above 46500, the bearish indications would be deemed to have failed
  • While the short term implications are bearish, a move to the initial downside target provides a relatively small reward relative to the risk associated with the 46500 stop level 

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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.