(H0) Recovery Likely A Correction *RES...>

GILT TECHS: (H0) Recovery Likely A Correction

*RES 4: 133.59 High Nov 26 and key resistance

*RES 3: 133.35 High Dec 2

*RES 2: 132.42 High Dec 12 and intraday key resistance

*RES 1: 132.12 High Dec 16

*PRICE: 131.96 @ Close Dec 17

*SUP 1: 130.45 Low Dec 13

*SUP 2: 130.39 1.764 projection of Nov 26 - Dec 3 decline from Dec 4 high

*SUP 3: 130.00 Psychological round number

*SUP 4: 129.60 2.236 projection of Nov 26 - Dec 3 decline from Dec 4 high

H0 Gilt outlook is unchanged. Whether the rally on Dec 13 is the start of a

bullish theme is still too early to tell. The initial sell-off on Dec 13 saw

price register a fresh low of 130.45 confirming a resumption of the downtrend

that has been in place since September. With bearish conditions holding, scope

is seen for weakness towards 130.39 and the psychological 130.00 level next.

Clearance of 132.42, Dec 12 high is required to alter the picture.