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Thursday, September 15, 2011

NCDEX Guar Gum Oct CMP—Rs 13703.00

Technical Outlook & Trading Strategy:-

The price action of Guar gum since10th Aug 2011, has now taken the shape of a head and shoulders price pattern on its intraday charts.

We would like to point out that a head and shoulders price pattern signifies distribution and a breakdown below the neckline support levels will lead to severe correction in prices.

Thus, we recommend traders to sell on a sustained break below Rs 13570 levels with a stop loss placed above Rs 13761 levels for downside targets of Rs 13280 / Rs 13000 levels expected to be achieved in 2-3 sessions once it registers a break below the levels mentioned above.

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