(Z17) 127.03 Break Leaves Downside.......>

GILT TECHS: (Z17) 127.03 Break Leaves Downside Open To Further Correction

*RES 4: 128.37 1% volatility band

*RES 3: 128.10/21 7 week bull channel top, Jun 14 high

*RES 2: 127.83 Aug 29 high

*RES 1: 127.44/54 Sep 1, Aug 30 highs

*PRICE: 127.11 @1048GMT

*SUP 1: 126.82 Aug 25 low

*SUP 2: 126.49 Aug 23 low

*SUP 3: 126.24 Aug 16 low

*SUP 4: 125.96 Aug 03 low

*COMMENTARY* Tried to take advantage of last week's break above the 76.4% Fibo

retrace level at 127.22. A high of 127.83 already attained but the rally has

lost some impetus over the course of the last couple of days. With the loss of

support from the Aug 21 high at 127.03 this leaves the downside vulnerable to a

deeper correction of recent gains from the Aug 16 low at 126.24. In the interim,

127.44-127.54 becomes the bar to any fresh upside interest at present.