Overnight Moves

Today, we looked at 15 charts; below are only some of them, but first, let’s have a look at the overnight moves. Today, we see the metals space taking some hits across the board, while the Rand has strengthened marginally. With no new major headlines on the situation in the Middle East, we have seen oil pull back slightly, with WTI coming down by 2.33%.

S&P 500 Index

We have seen some continued gains in the S&P 500 Futures, which might be due to us seeing fewer major headlines about new developments in the Middle East conflict. Overall, it seems the market is strengthening as much as possible in the given period of high volatility. That said, we would not get comfortable and complacent, as we could be surprised tomorrow to find we are going sideways again. Looking at levels for today, we have 6,800 as resistance, and our supports will be found at 6,700 and 6,684. We don’t really expect much, but it is still worth keeping an eye on movements today to see how the market in general feels.

Sasol (SOL)

One to watch today, with the recent pullback from oil, will be Sasol, which saw incredibly strong action yesterday and has continued to do well on the New York Stock Exchange ADR listing, SSL. The big level for this stock is R220, which, if we manage to reach and hold above, would mean that we could possibly face that R220 to R260 range we had back in 2023. First, we need to reach R210 and hold above R200 today, as we could see some profit-taking. Currently, we are wary of taking shorts on this stock, but if oil continues to weaken, then we would suggest it. So, give it time, and let’s see how the situation in the Middle East unfolds, especially around the Persian Gulf, as sections of it see further attacks.

Mr Price (MRP)

Yesterday we had the capital markets day, and the session started well, going into the event, but the market reacted badly to comments that the group is looking to make further offshore deals. This announcement was the reason for this near 4% move to the downside. We saw elevated volume that managed to break previous lows, and we now see R160 as the closest big level, which we did manage to bounce from yesterday. We would like to see some consolidation before making any moves on this stock, as risk-off sentiment might remain, and we could see further selling. Wait and see how the market opens today before risking any shorts or longs.

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