South Africa 40 Cash Index Price Reversal Off Support

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The South Africa 40 cash Index could be extending its longer-term uptrend after a bullish short term price reversal.

South Africa 40 Cash Index

Source: IG Charts

The South Africa 40 Cash Index has now formed a bullish price reversal off the 69835-support level. The bullish reversal suggests that the short-term trend is now aligning with the longer-term uptrend. The longer-term uptrend is considered with the price trading above the 200-day simple moving average (200MA) (blue line).

The 73420 high marks the initial resistance target from the bullish reversal. Traders who are long might consider using a close below the black trend line on the chart as a trailing stop loss indication / failure level for the suggested move higher.

Cash Adjustment

The South Africa 40 Cash Index is not expected to adjust for a dividend in the underlying this week.

IG client sentiment

Source: IG

As of Tuesday the 30th of May 2023, the majority (56%) of IG clients with open positions on the South Africa 40 Cash Index expect the price to fall, while 44% of clients with open positions expect the price to rise.

Key macro data this week

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