(U9) Testing former channel base *RES....>

GILT TECHS: (U9) Testing former channel base

*RES 4: 132.45 High Jul 4 and key bull trigger

*RES 3: 132.00 High Jul 8

*RES 2: 131.57 61.8% retracement of the Jul 4-Jul 12 sell-off

*RES 1: 131.51/52 Former bull channel support, drawn off May 21 low/High Jul 18

*PRICE: 131.21 @ Close Jul 18

*SUP 1: 131.05 Low Jul 18

*SUP 2: 130.52 Low Jul 16

*SUP 3: 130.14 Low Jul 12 and key bear trigger

*SUP 4: 130.04 Low Jun 27

U9 Gilt yesterday tested 131.26, resistance at the former channel base. The

channel is drawn off the May 21 low and was breached last week. A clear break

above this line, at 131.51 today would signal potential for stronger gains.

Note, 131.57 is 61.8% of the move lower between Jul 4-Jul 12 and also an

important resistance. A break would open 132.00. A failure to clear the former

channel base would increase the risk prices reverse lower.