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- The SA40 Cash Index has started to test the guided failure level of 45585 but has not yet closed below this level
- This move has formed what looks like a small Head and Shoulders pattern
- A failure of the long position (with a close below 45585) would confirm the short term bearish Head and shoulders pattern
- However we still believe the longer term momentum to be up and continue to favour a move to 47050, a break of which further favouring a move to 48050
- The failure level thereof remains a close below 45585, which if breached considers a downside move from the head and shoulders position to 44700, but this is still not considered a high probability shorting opportunity
- If the failure scenario arises we prefer waiting for weakness to play out before finding a renewed long entry point at lower levels