SA40 Cash Index
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.
SA40 Cash Index (Previous)
The SA40 Cash Index has traded through our initial target at 52345 and is nearing our secondary target at 53090. The momentum up has regained some traction. A close above the 53090 level calls for the high at 54790 as our next resistance target. Traders not already committed to the long side might look to intraday pullbacks for new entry opportunities. The dotted trend line is now being used as a trailing stop. Should a pullback instead extend to a price close below this trend line, we would be looking to exit the trade.