South Africa 40 Cash Index Price Reversal and Weekly Outlook

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The SA40 Cash Index could be confirming a short term bullish price reversal ahead of news heavy week.

 SA40 Cash Index

Source: IG Charts

The South Africa 40 Cash Index looks to have finally found some interim support at the 66400 level. Marked with the black arrow we see an intraday reversal off the level (hammer). The reversal is supported by an oversold signal and is also just off the 200-day simple moving average (200MA) (blue line).

Ideally, we would like to see some follow through with a positive close on today’s candle. In this scenario, 69240 becomes the initial resistance target from the move, while a close below 66400 might be used as a stop loss indication for traders. A break of 69240, confirmed with a close, would consider 70700 as a further target from the move.

Source: IG

Most IG clients (as of the 17th of March 2023) with open positions on the South Africa 40 Cash Index expect the price to rise in the near term, while 39% of IG clients with open positions expect the price to fall in the near term.

Cash adjustment

Traders of the South Africa 40 Cash Index are reminded that the price will adjust for a dividend in the underlying on Tuesday the 21st of March, currently estimated at around 117 points.

Key data to watch

Over the course of the next week, traders will be mindful of the following macro data releases which have an increased probability of inducing short term market volatility which could reflect on the South Africa 40 Cash Index.

Key scheduled economic data releases in the new week are as follows:

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