Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
South Africa 40 Cash Index Downside Breakout Confirmed

South Africa 40 Cash Index Downside Breakout Confirmed

Shaun Murison, CFTe, Technical Strategist

SA40 Cash Index

South Africa 40 Cash Index Downside Breakout Confirmed

The downside breakout scenario on the South Africa 40 Cash Index has manifested, as marked with the red arrow on the chart. The bearish crossovers of the 20, 50 and 200 day simple moving averages (marked with the black arrow) reinforces a negative trend bias assumption. Traders not already committed to the downside breakout, might look to a rebound for short entry up until about the 50955 level. Should a rebound extend past 52100 (close above), it could be considered a stop level as we would need to reassess trend bias. 48400 is the initial downside target favoured from the breakout. A close below this level would call for 46950 as the next support target.

SA40 Cash Index (Previous)

South Africa 40 Cash Index Downside Breakout Confirmed

The SA40 Cash Index has moved to close below the dotted trend line used as the trailing stop loss level, and we now consider a market neutral positioning. The loss of momentum in the upward trend highlights a broader range consolidation environment, with no clear trend bias in place. The outskirts of this range sees resistance at 53090 and support at 50239. The index price is trading more or less in the middle of this range, no man’s land. We are looking for a reversal or break, of support or resistance, before initiating new long or short positions. For now, we are waiting for the next opportunity to present itself. Should the range trade or breakout trade scenario manifest, we will update our view accordingly.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES