We now consider the price activity below the 50239 level to be an inverse head and shoulders formation (labelled L, H & R), confirmed by the strong upside break (circled black).
Despite the rebound we still consider the trend bias for the index to be down. The move higher has also moved the index back into overbought territory.
The index price has also closed back above the 48400 level, which means we are currently not looking for short entries anymore, but rather sit in a neutral positioning for now
The lay of the 20, 50 and 200 day simple moving averages reminds us of the negative trend bias
The bearish crossovers of the 20, 50 and 200 day simple moving averages reinforces a negative trend bias
The loss of momentum in the upward trend highlights a broader range consolidation
The SA40 Cash Index has traded through our initial target at 52345 and is nearing our secondary target at 53090
From current levels we consider a short term range trade opportunity, with the initial upside target considered at 52345
It is an honour for me to accept the award for Central Bank of the Year on behalf of the staff of the Bank of Canada. And it is a real pleasure to be here […]
The SA40 Cash Index has now confirmed the trend line breakout we were waiting for in the last note (below), to trigger the long entry scenario