UPDATE: Sasol next target is more morbid to R83.96We've held onto the Sasol short and extended the take profit.
Purely based on the bigger picture on a weekly chart.
There's an even larger Inv Cup and Handle.
Price has broken below the Brim level and entered into a Down regression channel. By the looks of it, the price will tank down to R83,96.
The nature of the trade is HIGH probability as the Price<20 Price<200
Target R83.96
Jsesol
TAKE PROFIT REACHED: Sasol Price hit the R184.52 level-now what?Rising Flag formed on Sasol, the price broke below and beautifully it went down on a strong trajectory and declination. The price remained below the 200MA confirming the bear market for the company.
The price came down in a strong fashion takeing it to the first target of R184.52.
The oil price also coincided with the Sasol price having the downtrend dominate taking investors and trader out and shifting to shorts and sells.
The previous trend was down, and it was clear that the downside that came here was a DIstribution phase of the market environment...
SO where to from here?
Well, Down!
There is no indication of upside or slowing down. And when there is I'll let you know.
Sasol setting itself for great upside to R339.45W Formation is forming on Sasol.
We are seeing the downtrend slow down in momentum, and it looks like the price wants to break up and out of the down trend.
This is a bit premature for a breakout trader, but it's still good to watch and prepare for.
We have other indicators that still show downside (but potentially changing trend)
200<21<7 - Bearish
RSI <50
Target R339.45
Wait for breakout first then it's full steam ahead to the upside.
TARGET hit Sasol at R221.40 but still looking bad Inv Cup and Handle formed on Sasol and we knew once there was a break below the brim level, downside was to be followed
The other indicators via peripheral also confirmed it as 200 > 21> 7
RSI<50 (Lower highs)
Target hit was R221.40
Now the trend is still down, there aren't many strong levels of support (liquidity). So this means, we are still looking for shorts.
But will send out another trade idea when it lines up.
Sasol pumping to R365.50Inverse Cup and Handle has formed on Sasol.
It's a rare Chart Pattern where an Inverse Head and Shoulders never formed the right shoulder
This means, the momentum to upside is strong and the price does not want to retrace back.
7>21 - Bullish
RSI >50 Bullish
Target R365.50
GENERAL INFO
Sasol (founded in 1950 in JHB) is a large South African multinational energy and chemical company which operates in more than 30 countries.
It is also one of the world's largest producers of synthetic fuel from coal and its main products include liquid fuels, chemicals, and low-carbon electricity.
The company is involved in the exploration, production, processing, and marketing of natural gas and oil.
Sasol is continuing to tank further to R225.43Bear Rectangle is forming on Sasol as it previous did a few months ago. There are bearish signals as the downtrend is continuing.
The 200 > 21 >7 MA which once the price breaks below R277.95 we will have our next target at R225.43.
This confirms with the ongoing drop in oil price...
Go long on SasolSasol 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 fills the gap. This is exactly how we see SOL playing out.
Action: Place a Limit Order to go Long with your Limit Price set to R380.00. Set your Stop Loss to R340.00 and your Take Profits to R420.00 and/or R460.00.
JSE:SOL Sasol Breaking the Trading RangeSasol has formed a smaller Trading Range (TR). There has been a steady decline in volume indicating absorption. Divergence on the Volume RSI points towards accumulation. Price is approaching the Yearly Pivot Point and 200MA. If it jumps across this resistance we can see a markup but if it finds resistance we this could indicate distribution.