(Z17) Decline Continues, 123.46-123.32...>

GILT TECHS: (Z17) Decline Continues, 123.46-123.32 Next Supports

*RES 4: 124.48/49 Hourly highs Oct 20, Oct 23

*RES 3: 124.22/27 Oct 20 low, intraday high

*RES 2: 124.10 Hourly congestion Oct 24

*RES 1: 123.96 Oct 24 low, now resistance

*PRICE: 123.60 @1011GMT

*SUP 1: 123.46 Oct 13 low

*SUP 2: 123.32 Oct 6 low

*SUP 3: 123.12 Sep 28 low

*SUP 4: 123.04 1% volatility band

*COMMENTARY* Monday's rally faltered at 124.69. The subsequent fall has now

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

further fall, as we continue to correct recent gains from the 123.32-123.12

lows. As a result, look to 123.46-123.32 for protection to those lows. In the

interim, resistance comes from 123.96-124.10, above the latter currently needed

for respite.