Marcelle_Nel

A look at the bullish scenario!

Long
JSE:SOL   SASOL LIMITED
After a weekend of analysis and considering some alternative patterns I came across this clear ascending triangle pattern. We now had 1 of 3 scenarios that WILL play out: either the price will break up, break down, or consolidate further and trade sideways for a while as the market decides where to put it's money.

According to Bulkowski's rules for ascending triangles they will break up 63% of the time: http://thepatternsite.com/at.html#:~:tex...

The RSI is neutral with more upside potential. The hourly MACD and weekly MACD shows an upward trend - making it more likely that we will indeed break up out of this triangle.

Comments

let my put it this way Sasol expanded by borrowing heavy
with a rights offer and then some they under estimated
the market and the project so they borrowed another 2 billon
cutting the strong share prices then came covid 19 and the fall of Big Oil
if they were not so strong they would have been liquidated the share price has fallen
as the shareholders run for the hills leaving Sasol shares only one option to go up from here
so yes i must believe it will go up as it is oversold? they have a long road ahead for the patient investor
there are better options in the market if you look closely.
+1 Reply
jan14633 surecanweight
@surecanweight, Hi I like the way you think. Do you think Nedbank or EOH is a good investment? 6-12 months?
Reply
@jan14633, I personally think the big finance houses are going to do relatively well. I bought ABSA shares in stead of Nedbank tho, just based off my own analysis on the longer term dividend yield and discount I could get them at. EOH, I know absolutely nothing about, so i refrain from giving opinions on that kinda stuff bro.
+1 Reply
jan14633 Marcelle_Nel
@Marcelle_Nel, as always thanks for taking the time to respond. appreciate your insights. Blessings
Reply
To give you some more insight
the COO of nedbank just sold 48500 shares of the company
so yeh i stick to my analises the banks are mirroring the
market sentiment
Reply
SASOL is a good swing trade, sometimes dropping or increasing by 10% per day. There has been a lot of bad news for the company of late, like the debt, US project overruns, retrenchments and sale of assets. On the positive side, its a very diversified chemicals business and will move further away from pure crude, they have hedged against any drop in oil price and they have a solid plan. It's one of the few global companies that will actually survive this pandemic, and be in a very strong position in 2-3 years.
Reply
Marcelle_Nel gouvias110
@gouvias110, I agree 100%. I also listened to an interview with its CEO the other day on the plan forward and indeed I was given a lot of confidence in their abilities. With this morning's drop to 125 I went ahead and bought shares again
Reply
After fridays bloodbath in the banking sector i would
rather sit on the sideline and wait for the confirmation
Reply
jan14633 surecanweight
@surecanweight, will do thanks!
Reply
I would like to find out if it is wise financially to buy Sasol shares? Over the last week it dropped drastically. Are they high risk?
Reply
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