Sasol Limited Shares Jump 3.45% Amid Emissions Pivot and Bullish Chart Breakout

Sasol Limited (JSE: SOL) jumped 3.45% on the JSE, closing at R7,145 as investors reacted to the company’s updated emissions and coal strategy ahead of its May 20 Capital Markets Day. CEO Simon Baloyi reiterated Sasol’s 30% greenhouse gas reduction by 2030 target while maximising South Africa’s coal reserves.

Sasol is still the country’s second largest emitter but its dual track approach – committing to environmental goals while maximising local resources – has sparked cautious optimism. This is a departure from earlier plans to pivot fully to natural gas and hydrogen. Despite the recent 48% share price drop and write down of the Secunda coal-to-fuel facility, Baloyi’s strategy suggests a return to operational pragmatism.

Capital Markets Day and Long-Term Potential

Investors are waiting for Sasol’s first Capital Markets Day since 2021 where executives will outline production targets, cost plans and international growth priorities. Analysts say this will provide much needed clarity on chemical margins and sustainability funding given the oil price volatility.

Supportive tailwinds:

• Included in MSCI World Index – boosting global inflows

• Oil prices rebounding – supporting earnings

• Africa’s energy transition attracting new capital

Sasol’s balance between environmental goals and realistic energy production aligns with broader African energy policy and could make it a regional leader in energy reform.

Sasol Limited (JSE: SOL) Technical Breakout Adds Fuel to the Rally

The bullish sentiment is confirmed on Sasol’s 2H chart which shows a clean breakout above the multi-month descending trendline and horizontal resistance at R6,939. The move followed a textbook rising triangle formation – a bullish continuation pattern – backed by strong volume and a bullish MACD crossover. The 50-EMA (R6,771) is now sloping upwards, reinforcing momentum.

Key levels to watch:

• Above R7,209: Could trigger up to R7,589 and R8,014

• Below R6,939: Would invalidate breakout and be cautious

• Retest zone (R6,939-R7,145): Buy dipIf this works.