(Z17) 123.96 Now The Key To Further......>

GILT TECHS: (Z17) 123.96 Now The Key To Further Near Term Respite

*RES 4: 124.50/55 Hourly congestion area Oct 20-23

*RES 3: 124.40 Oct 18 low, now resistance

*RES 2: 124.22/27 Oct 20 low, Oct 25 high

*RES 1: 123.96 Oct 24 low, now resistance

*PRICE: 123.83 @1714GMT

*SUP 1: 123.33/44 Hourly support, intraday low

*SUP 2: 123.12/17 Sep 28, Oct 25 lows

*SUP 3: 123.02 1% volatility band

*SUP 4: 122.60 Jan 26 low

*COMMENTARY* Monday's rally faltered at 124.69. The subsequent drop has broken

below 123.96-123.72 support, which leaves the downside susceptible to a further

fall, as we continue to correct recent gains. The added loss of 123.46-123.32 on

Wednesday, exposes the Sep 28 low at 123.12 again and the 1% volatility band at

123.02. As a result, resistance comes from 123.70 but likely requiring a move

back above 123.96 before any real interest in a recovery will surface.