South Africa 40 Cash Index Testing Resistance, Large Cash Adjustment Expected

  • Stock Market Analysis

The SA40 Cash Index has now moved to test our resistance target at 70700. Stop loss trailed higher.

South Africa 40 Cash Index

Source: IG Charts

The South Africa 40 Cash Index has proceeded to test our 70700-resistance target following the upside break of the 69240 level.

Currently we are looking for a close above the 70700 level to open a path to our next resistance target at 72840.

Traders who are long from the previous breakout might consider trailing their respective stops from the 68550 level to a close below the 69835 level now while in search for further gains.

Cash adjustment

Traders of the South Africa 40 Cash Index can expect an adjustment in line with the dividend in the underlying index at equity market close on Tuesday the 28th of March 2023. The dividend in the underlying is currently expected to be 178.3 points.

Source: IG

As of 12h30 on Tuesday the 28th of March 2023, the majority (69%) of IG clients with open positions on the South Africa 40 Cash Index expect the price to fall, while 31% of clients with open positions expect the price to rise.

Key Data to watch

The week ahead has several key events both domestically and internationally which could provide short term volatility to markets and in turn the South Africa 40 Cash index.

On the local front, Thursday’s South African Reserve Bank (SARB) Monetary Policy Committee (MPC) meeting will have traders expecting another 25-basis point (0.25%) rate hike at its conclusion. Friday’s US inflation data ( Core PCE Price Index ) has the potential to move markets most, in lieu of its effects on the pace and path of monetary policy (particularly in the US), a key theme at present.

A calendar of scheduled economic data points for the week is as follows:

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