Will SASOL's market price make a Market Structure Shift?
Support and Resistance Levels:
All-Time Low: At 2,110c
Highlighted Support Zones:
Around 12,000c — 13,000c (Green shaded zone) — This has been tested multiple times, indicating a strong support level.
Around 10,900c(Recent support zone marked as LL) — Recently established support zone.
Highlighted Resistance Zones:
Around 15,700c — 16,000c (Red shaded zone near recent highs) — This has been tested, indicating a strong resistance level.
Recent peak and major level at around 43,600c
Descending Trend Line: Connecting lower highs (LH) from mid-2021 onwards.
Potential Reversal: Indicated by the recent break of the descending trend line.
Lower Highs (LH) and Lower Lows (LL):
Lower Highs (LH): Indicate a bearish trend in the long term, showing that the price is making lower highs over time.
Lower Lows (LL): Indicate continued bearish sentiment as lows are lower than previous lows, supporting the trendline.
Current Price Action:
Current Price: Around 14,900c, showing a significant positive movement (+1,255c or +9.20%).
Price Consolidation: The price is consolidating between the support level of 12,000c and the resistance level of 16,000c.
Trend Reversal: The recent break above the descending trend line suggests a potential reversal in the long-term bearish trend.
Potential Scenarios:
Bullish Scenario:
Break Above Resistance: If the price breaks above the resistance zone around 16,000c and sustains above it, it could aim for the next resistance level near the 24,600c mark.
Continued Lower Highs and Lower Lows: The price making higher highs and higher lows would confirm the bullish trend reversal.
Bearish Scenario:
Failing to Hold Support: If the price fails to hold the current support around 12,000c and breaks below it, it might test lower support levels around 11,000c or even lower.
Resumption of Downtrend: A break below the recent support could signal a continuation of the bearish trend or a more extended correction phase.
Sideways Movement:
Price Consolidation: The price might continue to consolidate between 12,000c and 16,000c, forming a range-bound movement until a clear breakout direction is established.
All-Time Low: At 2,110c
Highlighted Support Zones:
Around 12,000c — 13,000c (Green shaded zone) — This has been tested multiple times, indicating a strong support level.
Around 10,900c(Recent support zone marked as LL) — Recently established support zone.
Highlighted Resistance Zones:
Around 15,700c — 16,000c (Red shaded zone near recent highs) — This has been tested, indicating a strong resistance level.
Recent peak and major level at around 43,600c
Descending Trend Line: Connecting lower highs (LH) from mid-2021 onwards.
Potential Reversal: Indicated by the recent break of the descending trend line.
Lower Highs (LH) and Lower Lows (LL):
Lower Highs (LH): Indicate a bearish trend in the long term, showing that the price is making lower highs over time.
Lower Lows (LL): Indicate continued bearish sentiment as lows are lower than previous lows, supporting the trendline.
Current Price Action:
Current Price: Around 14,900c, showing a significant positive movement (+1,255c or +9.20%).
Price Consolidation: The price is consolidating between the support level of 12,000c and the resistance level of 16,000c.
Trend Reversal: The recent break above the descending trend line suggests a potential reversal in the long-term bearish trend.
Potential Scenarios:
Bullish Scenario:
Break Above Resistance: If the price breaks above the resistance zone around 16,000c and sustains above it, it could aim for the next resistance level near the 24,600c mark.
Continued Lower Highs and Lower Lows: The price making higher highs and higher lows would confirm the bullish trend reversal.
Bearish Scenario:
Failing to Hold Support: If the price fails to hold the current support around 12,000c and breaks below it, it might test lower support levels around 11,000c or even lower.
Resumption of Downtrend: A break below the recent support could signal a continuation of the bearish trend or a more extended correction phase.
Sideways Movement:
Price Consolidation: The price might continue to consolidate between 12,000c and 16,000c, forming a range-bound movement until a clear breakout direction is established.
Penafian
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