Sasol has been treading water for 4,5 years now. This time as many times before it has hit support. Is this a case for channel wash, rinse, repeat, or will support break this time around. Shareholders seems to be losing some patience if you look at the action in the last few weeks.
The first correction happened during the financial crisis. The other two corrections are in a large part self inflicted with the massive Lake Charles project. Once that project comes 100% online and the drag on earnings due to capital expenditure subsides, the Sasol share price should recover. Not for short term investors.
Looking at SOL, we may derive the following from the weekly chart:
1. We are at a major support level.
2. Keep in mind the growing bid on wti/crude.
3. I am favouring a move to upside.
4. Stop loss is in a non traded zone (good for limiting risk).
5. As always - risk management.
Let's see what happens.
Note: The views provided herein do not constitute...
Sasol fell sharply when news surfaced of further overspending at its Lake Charles facility in Louisiana. But, with oil on the rebound, it might be a good time to buy the stock at these new lows.
As you can see from the above chart, there is a big gap between price on 21 May 2019 and 22 May 2019. In technical circles, there is a common saying: The price always...
Sasol once again reaching long term support at 35400 levels and holding. This could be an opportunity if support continues to hold to keep for the longer term. Top of the consolidation range is 48900. If Sasol breaks bottom support, stick to a stop loss.
So, Sasol’s R357 support held up and between it being oversold (according to it’s 14-day RSI) and have Rand weakness, made a nice little bounce. Will watch that long-term support line at R383.50 as my first target. Should that break, it could see us test the next resistance level of R405.50.
In one fail swoop, Sasol not only dropping 13% in one day, but also broke a very strong support line at R383.50. Main reason was the Lake Charles Project not only seriously going over budget, but also starting to look like the Never-Ending Story. Debt levels are becoming a serious concern and although the lowish PE multiple, the outlook still doesn’t look good....
Call me crazy, but today's Sasol shocker provides an excellent trading opportunity. Today's "flash crash" has taken the price back down to a monster support level and I really think this is one for the punters. If fortune truly does favor the brave, then I should be just fine. I have bought this support level for a bounce back above R400.00 and I wouldn't be...
This stock is moving in a downtrend, and the weekly timeframe shows a possible right shoulder forming. A break of the neckline on this weekly timeframe will signal further bearish momentum. On the 1-hour timeframe, price are trickling down as the momentary uptrend has finished and prices are below that ascending trendline, forming a series of lower highs and lower...