Sasol is in week 19 of a weekly cycle, it has wasted precious time in a ranging price action. Here we see price is facing resistance of the 30 week moving average while supported by the 200 week moving average. Price is caught in a triangle that can break either way, however because of time we can be expecting the cycle to be looking for a top.
Curiously the current price action & pattern seems to resemble that before the COVID crash where the cycle topped in week 18. On the daily timeframe price should be moving higher into a cycle high so we have higher confidence the triangle will break to the upside potentially trapping shorts before buyers vanish. We will be watching this one closely.
Curiously the current price action & pattern seems to resemble that before the COVID crash where the cycle topped in week 18. On the daily timeframe price should be moving higher into a cycle high so we have higher confidence the triangle will break to the upside potentially trapping shorts before buyers vanish. We will be watching this one closely.
Trade closed: target reached:
Sasol has reached a point of taking most profit, in week 38 we can be looking for a bounce. We will assess another idea on the long side of the trade.
