Trading Sasol

Trade Sasol with Unum Capital.

To get started, email lester@unum.co.za

If you're following U.S markets/sectors, then you might know that energy stocks have become a relative outperformer. The sector's underweight position and relatively low valuations may be attractive market participants looking to allocate capital away from the sectors which have driven the markets to new highs in recent years. Just under 7 weeks ago (10 February) we published a chart, considering the long term level of interest at/near the R70 level. If local sectors have any correlation to U.S. or other global markets, then that would bode well for Sasol, where the negative outlook is reflected in the price.

The relative ratio chart shows the share trading 73% below it's 200-week SMA. This is an extreme reading.

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Previous Post (10 March): Trade Alert: Buy Sasol

Below is the TEXT as per the accompanying image:

HIGH RISK BUY IDEA therefore small-than-average position sizes may apply. The share has been sold off aggressively and in recent days/weeks traded in a oversold regime. While the share has been attempting to develop a base, this may be a RANGE to starting building a buy/long position with the expectation that the price starts to stabilize over the near term followed by a potential bullish reversal. Buy at current levels or lower (traders could consider starting with a 1/3 of the position). As always, traders could consider the following if/when the prices approaches the target: bank/take profit, partially scale out, adjust the stop-loss to protect profits. Time stop: 10 October 2025.

Trading Levels

Suggested Entry: 7917c or better/lower (this was the price at the time of writing)

Stop-loss: 7170c

Target: 9500c

SOL's Model Reading as of 14h15

Lester Davids

Analyst: Unum Capital