Sasol has had an incredible run over the last year and has been in a clear uptrend, higher lows and higher highs each time.
There are no signs of this abating, although fundamentals should be considered. I believe that if the oil price stays elevated, sentiment will continue to drive this share higher where it could close the gap from May 2019, closing that gap back up to R425
If this is the case, then we can expect an additional 30% upside from current levels.
I will start nibbling at current levels and will accumulate dips.
My new exit price will be R425 ( 29% upside)
My stop loss price will be at R250 ( 24% downside)
This is just looking at the technical side of things and is not taking the fundamentals into account. We mustn't forget that Sasol hedged their oil price last year, as well as the USD/ZAR exchange rate, so higher oil prices doesn't necessarily equate to bigger profits. This means that at some point the price will reflect the fundamentals, but at the moment I believe it is sentiment driven and will continue to be as long as we have these dark clouds surrounding Russia and Ukraine and the price of oil.