Sasol Limited (JSE: SOL) faces significant challenges as climate activists disrupt its annual meeting, prompting cancellation. The company, South Africa’s second-largest greenhouse emitter, is under scrutiny for unclear commitments to cut emissions by 2030. Shareholders, including major investment managers Ninety One and Old Mutual, threaten to vote against the company.
This climate activism reflects a broader trend, emphasizing the increasing pressure on industries amid South Africa’s energy transition. Despite this, Sasol shows strategic resilience by appointing Simon Baloyi as CEO, succeeding Fleetwood Grobler. Baloyi, with a deep understanding of the company’s operations, aims to lead Sasol through its climate targets. Furthermore, collaborations in renewable energy with Mainstream Renewable Power and exploration into sustainable ingredients signify a potential shift towards greener practices.
Technical Analysis
Sasol’s 1-day chart indicates a bearish sentiment. Currently trading at R215.44, with a recent break below the ascending channel. Trading below the downward-sloping 50-SMA (blue line), 100-SMA (orange line), and 200-SMA (red line) signals a bearish trend. The recent downward cross between the 50-SMA and 100-SMA suggests a short-term momentum shift.
RSI trending downward at 35.44 indicates bearish sentiment but is nearing oversold levels. Short-term trading opportunities towards the 23.60% Fibonacci retracement level at the R224.67 price level could arise should the bulls sustain a push higher. A break above the initial resistance could confirm the bullish momentum, likely bringing the R235.36 and R247.14 resistance levels within the bulls’ reach in the short term.
However, a sustained push lower would leave a potential for continued bearish pressure towards the R210.78 support level. A break below the initial support could trigger a run lower and would likely bring the R202.75 and R195.87 support levels into play.
Summary
Sasol faces shareholder unrest amid climate concerns, impacting its annual meeting. The appointment of Simon Baloyi as CEO signals continuity but comes amid challenges.
Technically, the stock remains bearish below key SMAs, with short-term bearish prospects lower should the price action break below R210.78. Key levels at R224.67 resistance and R210.78 support could be pivotal for short-term direction as the stock navigates environmental concerns.
Sources: TradingView, Reuters, Simply Wall Street, SASOL, PR Newswire, MoneyWeb, BusinessLive.
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