Sasol Share Price Surges 6% – JSE: SOL Buyers Return on Oil Optimism, Russia Sanctions
After a brief pause at the end of June, Sasol’s powerful recovery resumes as oil market volatility and geopolitical factors reignite...
Quick overview
- Sasol Limited has experienced a significant recovery, with a 6.37% intraday gain pushing its stock price to 9,565.00 ZAC.
- The company's turnaround, nearly 100% since early April, is driven by oil market volatility and geopolitical tensions in the Middle East.
- Technically, Sasol has regained support above the 200-day simple moving average, indicating improved market sentiment.
- Broader macroeconomic factors, including sanctions against Russia, are enhancing Sasol's attractiveness as an alternative energy supplier.
After a brief pause at the end of June, Sasol’s powerful recovery resumes as oil market volatility and geopolitical factors reignite investor demand.
Surge Fueled by Oil Volatility and Geopolitics
Sasol Limited (JSE: SOL) is back in focus following a sharp intraday gain of 6.37%, pushing the stock price up by 573 ZAC to close at 9,565.00 ZAC (R95.65). The rebound comes after a brief late-June retreat, triggered by the ceasefire announcement in the Israel-Iran conflict that temporarily eased global oil concerns. However, with geopolitical uncertainty still lingering and crude prices remaining volatile, investors appear to be re-entering Sasol with renewed conviction.
Since early April, Sasol has staged a staggering turnaround, rising from around 5,200 ZAC to a recent peak of 10,230 ZAC—representing a nearly 100% gain in just over two months. The sharp advance was spurred by a spike in oil prices driven by Middle East tensions, helping to reverse years of weakness in the company’s share price.
Technical Landscape and Trading Activity – The 200 Turns Into Support Now
From a technical standpoint, Sasol’s price movement has been dynamic. The rally pierced multiple resistance levels in May and early June, surging past the key 200-day simple moving average (SMA) shown in purple. However, the price pulled back below the 200 SMA by late June before stabilizing near the 100 SMA (green). During this period, a doji candlestick formed—often signaling indecision or a turning point.
That signal now appears validated, with today’s strong recovery pushing the price firmly back above the 20-day SMA and consolidating near the 200-day level. This bullish close marks the first sustained trade above the 200 SMA since 2022, indicating improving sentiment and potential for further upside. Notably, Sasol has also maintained a robust trading volume, averaging around 2 million shares daily over the past ten sessions.
Broader Market Dynamics at Play
Adding to the bullish picture are macroeconomic tailwinds. The imposition of new sanctions by the U.S. and EU against Russia is increasing the attractiveness of alternative energy and chemical suppliers. South Africa, and Sasol in particular, stands to benefit from shifting supply chains and growing Western interest in securing more stable, non-Russian energy sources, which is going to China.
While Sasol remains far from its 2014 high of 65,400 ZAC (R654), the fact that it’s now comfortably trading above the 200-day SMA is a key technical milestone. The reemergence of support at this level is a promising development that could entice further institutional and momentum-based buying.
Outlook:
Sasol’s resurgence continues to be tied closely to the trajectory of oil prices and global risk sentiment. With the broader commodity complex showing signs of strength and geopolitical tensions far from resolved, the fundamental backdrop remains supportive. If buyers can maintain momentum and reclaim the 10,000 ZAC handle, further gains toward 11,000 ZAC may be achievable in the near term.
For now, Sasol appears to have successfully transitioned from a short-term correction to a renewed bullish phase, reaffirming its position as a high-beta play in the evolving global energy landscape.
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