Colin Abrams
Sasol has been moving sideways since early last month but is now building up for another short-term rally. Its chart alongside shows a target for it, for traders to capitalise on.
Recommendation: Traders buy.
Trend: Short term sideways. Medium and long term up.
Strategy: Buy at current levels for another rally.
(Daily)
Sasol has moved sideways over the past six weeks, and now looks ready to get going. It has formed a potential head and shoulders, but the odds are more likely it will be a head and shoulders continuation pattern, which is very bullish.
Its short-term stochastic oscillator (on top) is oversold, which is also bullish. It can be bought by traders at current levels for another short-term rally.
It is pointing to a short-term target of R620, based on the head and shoulders continuation pattern. Lock in partial profits at R605 to reduce your overall risk.
The initial stop is a close below R570.50. From R600 bring your stop up to below R583. Take partial profits at R605. From R615 raise it to a prior one-day low to protect profits.
Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend his courses, please go to
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