Will be monitoring Sasol closely for the next day or two. A nice little Falling Wedge that’s developing, with the share price now trading at the top of the wedge. I will be monitoring both the R415 level as first resistance point and then the 50-day Moving Average at R418.78 as a possible breakout. Should this occur, Sasol could very much target the R448 levels.
Should the top of the wedge hold, and we see a retracement, first resistance should be at the R383.50 levels. Bottom of the wedge currently at around R379 levels.
Sasol has been plagued by some bad news lately and an improvement in the ZAR/USD could add petrol to the fire. I also seen a few brokers lowering their outlook on the company from HOLDS to SELLS, which indicate that a long position should be implemented with caution. Thomson Reuters 12-month consensus forecast however still see 23% upside in the share price. Personally, I still believe that Sasol is a quality company and might just start nibbling if we see a breakout.