SA40 Cash Index update

SA40 cash index now in oversold territory at initial support. Trend followers will be looking for short term bullish reversal before commiting to renewed upside. 

SA40 article 12 09 2016

The SA40 Index has retraced from overbought territory to our initial trend line support level at 45770. There is as of yet no sign of an intraday reversal to support buying and we expect a test of the trend line support at 45400 next. Traders looking to get long might prefer to wait for a bullish reversal from this level or a break of the short term downward trend line before reconsidering 47045 as the initial upside target. A move below 44800 would necessitate the medium term uptrend to be reassessed. 

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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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