Applying the Fibonacci Extension to the current trend and combining it with previous resistance zones I assume will act as support during this next reversal phase, these are my buy in targets for the next 2 weeks :)
@scholtzflip, Thanks bro. Sasol seems well supported at the 130 - 135 level right now. I don't think it's justified. I think the breakout last week was disproportionate to the fundamentals underlying the economy right now. For that reason alone I am calling for it to re-enter and stay within my longer-term projected range. Slow, sustainable growth is more reliable.
@Marcelle_Nel Hey, thanks for the great analysis. I'm seeing the strong buys happening today and I'm wondering if maybe the downswing is over? I'm looking for an opportunity to enter the market (buy) as I missed the 120 levels.
@NEKA4, I won't feel too worried. The global pandemic is FAR from over. A lot still needs to happen. Don't let price dictate your response. Look at the facts of the scenario. The world economy is in a bad place. Market sentiment can easily be wrong. People are buying up the price due to misguided perceptions that everything os gonna be fine. They are not close to fine...
@mokwaybr2, Hi, thanks for the compliment. Although I was way off on just how Sasol would push before correction takes place, I am glad to see it is happening now. Remember, what comes up must come down, and generally, the higher and quicker it goes up, the lower and quicker it comes down. That is why I do not trust explosive pumps up. It is slow, gradual growth that one wants to see. That is much more sustainable. It shows you the market is assessing the situation, calculating risk vs reward, and making sensible choices. Massive spikes in price just shows emotional buying and FOMO. That leads to emotional selling again.