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Don't even think about buying this one stock while oil is tanking!

by , 07 January 2015

There've been mixed emotions with the ongoing oil crash.

This week, the petrol price dropped 127 cents, and everyone is over the moon!

In fact, when I filled up my car, I saved a whopping R50 and I felt ecstatic.

Yay! Excuse my sarcasm...

But on the other hand, oil dropped an insane 59.74% from $126.69 to $51 a barrel.

And now, it's starting to have a lethal impact on the oil stocks listed on the JSE!

In fact, when I went to my charts, I saw that one specific oil company is set to crash this year down 31.73%.

I hope you're not thinking of buying this one stock!

This stock has just broken its five year uptrend – Which should signal warning bells to you!

If you don’t know by now, Sasol (JSE:SOL) is ranked as the world leader in coal-to-liquid and gas-to-liquid technologies. And it employs over 34,000 people in 38 countries world-wide.

Despite Sasol’s massive global footprint and leader in the industry, the company’s share price has still not been able to go up with the falling oil.

Not only has it dropped from R651 down to R392.78, it’s also broken a crucial five year uptrend level.

Take a look at the chart, so you can see what I mean. 

Sasol is in BIG trouble now that it’s smashed through the BLACK line!



Looking at the weekly Sasol chart, you can clearly see how it’s had a fantastic run from 2010 at R263.06 all the way up to R652.99 in 2014!

But the run is over… Since 2014’s high, it’s been falling and falling- harder and HARDER!

You might think it’s cheap to buy now around R392,78, but as they say…

“Don’t try catching a falling knife.”

Since it’s broken its uptrend support, it looks like Sasol’s next pit stop is down to R268.10 which is a 31.73% move down.

So, do you just twiddle your fingers and toes while you wait for the price to come down?

I don’t think so…

Here are three things you can do to profit from this oncoming downside!

1.   You can sign up to Red Hot Storm Trader service and wait for a short (sell) signal on Sasol.

According to my proven trading strategy for just over a decade, it looks like a strong profit short opportunity is looming any day now. So don’t waste any more time and sign up now!
 
2.   If you don’t like shorting a strong stock like Sasol, then you can simply wait for the R268.10 to hit before you think of investing in this oil giant

This might be a great opportunity to buy a strong company like Sasol, but never risk to much of your money in a falling market.
 
3.   Wait for Sasol to break above the big black line at R428.92, where it has a higher chance to continue on the way up.
 Let’s start off 2015 on a profitable note instead of just buying falling knives for the sake of it.

And until next time, “Wisdom yields Wealth” 










Don't even think about buying this one stock while oil is tanking!
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