CPO hit a 27 month high and this has pushed the prices of CPO counters higher on expectations that they would report better than expected results. Golden Agriculture is the most levered to CPO prices and could be the biggest beneficiary of higher CPO prices.
On 5 Nov, I mentioned that "On 4 Nov, the following session, this counter traded the whole day at 70c or higher. Closing at 70c seems to have confirmed it as the new support." and that "With improving CPO price now a reality, it seems less risky loading up on CPO counters and that is precisely what market participants have done. Loading up on a pullback would be the prudent thing to do, however."
I still think that loading up on a pullback is more prudent but the rising wedge pattern has failed and price has pushed higher. 70c support is confirmed and should be something to watch out for in case of a pullback in price.
Golden Agriculture will be reporting its results on 11 Nov. If results disappoint, we could see the 70c support tested. If results are better than expected, we might see its share price go even higher.
Even though a very long white candle formed today to close at the day's high of 78c, it is worth noting that volume was not as high as 13 Oct. The picture of negative divergence between volume and price is still present. Price moved higher today due to a lack of sellers and not an abundance of buyers. It would take a very brave person to load up to go long at this stage.