Technical analysis:

Sasol in low-risk buy area

AFTER some steep selling off in recent weeks and months, Sasol has dropped to an important support area and is a low-risk buy at current levels as shown on its chart. –Very oversold.

Start buying.

Sasol Recommendation: Trend:

Short and medium term down, but oversold.

(Daily)

Sasol has fallen sharply to reach important support at line/s 1 (R361 to R354). Last week it bounced from there, and overall it is in a low-risk buying area.

Its short-term stochastic (on top) is oversold, as is its weekly stochastic (not shown).

Start buying part of the position now, and buy the rest on a one- or two-day pullback. (If it doesn’t pull back, then enter the second part of the trade on a reversal week up).

Look for a move to line 4 at least (R399/R400), to take trading profits. (It will probably stop there for a while and form a potential right shoulder of an inverse head-and- shoulders, before heading higher to R450; but it’s too early to say now).

The maximum downside risk here, as I see it, is to line 3 (R343). So for now, place your stop as a close below there. Once the price closes above R380, move your stop up to break even (your average entry). And from R394, raise the stop to a breaking of its prior one-day low.