Speculative Idea: Buy SOL

Speculative trading opportunity, with the view that we could see a reversion to the mean in the short term to medium term. We could see the share continue to consolidate in the R224 to R229 range however the following is my view on the potential opportunity. With the U.S. energy sector (XLE) being a leader overnight (+3.5%), we could see some form of buying filter through to Sasol. On Monday the share developed a pin bar candle formation, reflecting demand off the lows which is around the 22100c to 22500c range. This level coincides with: (1) the prior breakout level (Sept-2021), (2) near the lower boundary of the manually-drawn channel (3) close to 2x the mean of a 200-day linear regression channel. Note that the share is also appears extended to the downside vs it's 21/50-EMA range and 200-day simple moving average.

TRADING LEVELS:

Entry: 22700
Target: 24600
Stop-loss: 21350