Taking a step back and looking at the bigger picture can provide a lot of clarity.
Going as far back as June 2014, when Sasol made its all time high at 65299, the large wave structure from 65299 to 2077 is a zigzag.
Wave (A) was an impulse followed by a protracted flat for wave (B) and another impulse for wave (C).
What is interesting to note is that in wave (C), only wave 5 was driven by the covid-19 market sell-off.
The rally from the March 2020 low to the peak at 43860 appears to have been in five waves, which is bullish, hence I am looking at the current retracement as a correction of this five wave advance.
Price will most probably not go back towards 2077 but the stock can most certainly trade lower than 22136.
There is no evidence yet of a resumption of the bull trend so I will sit on my hands in the meantime.
Going as far back as June 2014, when Sasol made its all time high at 65299, the large wave structure from 65299 to 2077 is a zigzag.
Wave (A) was an impulse followed by a protracted flat for wave (B) and another impulse for wave (C).
What is interesting to note is that in wave (C), only wave 5 was driven by the covid-19 market sell-off.
The rally from the March 2020 low to the peak at 43860 appears to have been in five waves, which is bullish, hence I am looking at the current retracement as a correction of this five wave advance.
Price will most probably not go back towards 2077 but the stock can most certainly trade lower than 22136.
There is no evidence yet of a resumption of the bull trend so I will sit on my hands in the meantime.
