Since the start of the month, Guar Gum future prices have turned bullish. Prices enjoyed its recovery rally from the bottom of 10873 and recently touched a high of 11930.00, up over 9.50%. on a daily basis prices gained 2.78% and settled at 11844 compared to previous day’s close of 11520.00.
Technical outlook
On the above chart, prices found to be constructing a bullish three white soldier candlestick pattern, which is sign for a bullish momentum in near future. Adding to this, momentum indicator RSI 14 and its 9 SMA is also treading on an oversold zone, also supporting it.
However, Guar Gum prices would need to break its immediate resistance 11950, coinciding with SMA in order to test 12500-12780.00. Alternatively, any short-term dip towards 11500-11350 will give a buying opportunity.
On the downside, crucial support is seen at 10845 and traders may take it as a stop loss on a closing basis.
Alternatively, if prices break and close below it, then Guar Gum may retreat towards 10200-9890.00
Overall trend looks positive and stayed long side with given levels.