SOLBE1 trade ideas
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.
Best Probability Demand-Supply Zones: AGL, SSW, SOLBest Probability Demand-Supply Zones: AGL, SSW, SOL
Derived from my daily technical data sheet which highlights various data points.
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Sasol (SOL): Price Objective Still in PlayA while back Sasol was posted as a short entry, however upon meeting stop-loss criteria the trade was no longer in play. The share price has been ranging since then. The bulls will likely throw in the the towel and should let price drift towards the orange circle from where Sasol becomes an attractive entry for a long position, ideally it must find support on the upward slopping trendline. This one is a close watch & will be updated when it meets the parameters for a long position.
Those who are already long must be aware & adjust stop losses not to be trigged or to add to position.
Sasol: R246 Target HitSasol: R246 target hit during yesterday's session (traded as high as +249 today)
Original idea attached.
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Speculative Idea: Buy SOLSpeculative trading opportunity, with the view that we could see a reversion to the mean in the short term to medium term. We could see the share continue to consolidate in the R224 to R229 range however the following is my view on the potential opportunity. With the U.S. energy sector (XLE) being a leader overnight (+3.5%), we could see some form of buying filter through to Sasol. On Monday the share developed a pin bar candle formation, reflecting demand off the lows which is around the 22100c to 22500c range. This level coincides with: (1) the prior breakout level (Sept-2021), (2) near the lower boundary of the manually-drawn channel (3) close to 2x the mean of a 200-day linear regression channel. Note that the share is also appears extended to the downside vs it's 21/50-EMA range and 200-day simple moving average.
TRADING LEVELS:
Entry: 22700
Target: 24600
Stop-loss: 21350
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.
OppsAs traders and investors we like to ignore what we see and later say we couldn't have foreseen what happened. But you could there are always red flags
SASOL - Ominous Shampoo 😜 pattern I know alot of investors hold this company and rightfully so. It has however formed another Head & Shoulders pattern which if it plays out could open the gates to R170-R216
Bulls will only be safe if R323 is broken to the upside from what i can currently see on the chart. Note this is a bird's eye view so one can expect movements up or down on the shorter timeframes.
SASOL- Mind the gap!So we all know that Sasol is no longer an oil company right...? They did warn that chemical prices will cause a bit of confusion with their earnings too... Sooooo.... Oil price under pressure and some random mixed bag of chemical sales prices means that they have a bit of conundrum right...?
Why don't we keep it simple and just look at the chart then shall we? gap down on an update, then oil price comes under pressure...Update says chemical prices are garbage...Um...just sell it.
The stock has already broken below the 200 day moving average. It's already breaking horizontal support at R300.00. It's about to test the 50 day moving average at 290.00...Next support after that is R260.00... JUST SHORT IT! Target 260.00.
YOU HEARD IT HERE FIRST!
Sasol lining upIndicators are starting to look favourable here, but still waiting for the move upwards.
Sasol Inv Cup and Handle just made it bearish to R221.11Inv Cup and Handle formed on Sasol.
The price broken below the brim level.
The gap was filled when the price went back up to close and form the right handle.
Then the supply side kicked back in dropping it further.
We also see bearish indicators.
200 > 21> 7 - Bearish
RSI<50 (Lower highs) - Bearish
Target R221.11
ABOUT
Sasol is a global energy and chemicals company based in South Africa. It was founded in 1950 and was originally named the South African Coal, Oil and Gas Corporation.
The company is primarily focused on the production of synthetic fuels, chemicals, and gas. Sasol is one of the world's leading producers of synthetic fuels.
Sasol operates in more than 30 countries around the world and employs approximately 30,000 people.
The company is listed on the Johannesburg Stock Exchange and the New York Stock Exchange.
Sasol is one of the largest producers of low-emission transportation fuels in the world, including synthetic diesel, jet fuel, and naphtha.
In addition to its energy and chemicals operations, Sasol is involved in a number of other businesses, including mining, power generation, and technology.
Sasol breaks downSasol has broken its positive channel on earnings reported. Will see where it settles after news.
SASOL - Gap incomingSasol had a nasty drop after it released its trading update.
Its looks to be targeting gap close , R305-R310 is likely to be a hurdle for bulls.
$JSESOL - Sasol Ltd: Closing The Gap And Then Some.Sasol released a trading statement for the six months ended 31 December 2022 yesterday.
The statement was indeed a mixed bag of expected results which the market did not take kindly to.
The share gapped lower at the open and bottomed at 27801 zac.
Whether the market over-reacted or not is not a debate I get involved in.
On the positive side, the expected results have been priced in now so lets take a look where I see short-term opportunity.
The 36,6% share price decline from 43860 zac to 25644 zac is characterized by a sequence of lower lows and lower highs.
The rally from 25644 to 32381 just managed to make a new high relative to the last significant lower high at 32296 though this does not give me conviction that the bearish sequence has been broken.
The rally from 25644 was preceded by a double-convergence which was an early indicator that a trend reversal was imminent.
The MACD is still strongly above the zero-line which is a positive sign that momentum is still to the upside in the short-term.
To add to the upside conviction, price bounced at the trendline which previously acted as resistance and is now providing support.
From an Elliott Wave perspective, the rally from 25644 to 23281 looks impulsive and is labelled wave((a)) of a minimum three wave correction.
In the short-term, I forecast that the gap will be closed and the share is likely to make a new high above 32381.
Aggressive traders can use 27801 as a stop-loss level but the outlook will only be invalidated by a break below 26544.
Sasol will release its 2023 interim financial results on Tuesday, 21 February 2023.
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.
P/E rerating by end of 2023Long story short - the market will likely rerate the earnings multiple upwards as oil continues to remain elevated. Do keep in mind that the GOAT is buying chevron and occidental. The cash flow here is going to continue to impress and in a difficult global environment it will suddenly attract capital , causing that multiple to inflate towards the 2 digit mark.
SASOL - Trailed out After reaching a low of R256.44 , price printed a reversal and has trailed out the remaining position on the short.
Sasol is back at the key resistance zone around R323 and the 200dma . I will be watching to see how price action develops around here to see whether another short opportunity will present itself or if a breakout occurs.
NB: Stock has been upgraded / punted of late by various analysts.
Sasol, bullish?JSE:SOL pierced through the 200MA with decent volume. Bullish? The MA is still declining.
SASOLSasol didn't get to my 230 'short' as per my previous analysis. Very overbought on the RSI now, and could potentially retrace. It's now facing resistance ahead, in the form of the horizontal resistance as well the 200dma just above it.
SOLFrom this morning's research note to clients.
SOL | Buy dips 278-280c. Note the 7-day RSI is 70 (‘Strong’ but nearing the ‘Approaching Overbought’ range. Could rally to 295 at which it could be in the ‘Approaching Overbought’ range. This is also in line with the downward trend line connecting the peaks from 14-October.
'This note is geared toward ultra short term/active traders. In addition, the instruments covered assumes no existing positions held by the trader i.e. the next best buying level or next best selling level .'
