Gold Trading Halted on CME for "Stop Logic Event"
Gold trading was temporarily halted on the CME for 10 seconds this morning at 8:42 AM ET for a "stop logic event," according to Bloomberg. A big trade knocked $25 off the price of gold in a short, two-minute span, triggering the event. Below is a chart of XAU/USD on Trading Station showing the move.
What does this mean for those of us looking to trade gold at current levels?
While we may have bled off much of the premium behind a "debt crisis" bid on gold, there may still be enough insurance exposure that can send it the next leg lower on confirmation that the US government will offer a viable resolution. It is worthwhile to wait for further confirmation.
A break below the 76.4% retracement level at 1239.97 could target a further drop to the June 28th low of 1180.15. A stop level for a short position entered on such a break could be set above the 61.8% retracement level at 1,276.97.
Gold trading was temporarily halted on the CME for 10 seconds this morning at 8:42 AM ET for a "stop logic event," according to Bloomberg. A big trade knocked $25 off the price of gold in a short, two-minute span, triggering the event. Below is a chart of XAU/USD on Trading Station showing the move.
http://img22.imageshack.us/img22/5240/sc48.png
What does this mean for those of us looking to trade gold at current levels?
While we may have bled off much of the premium behind a "debt crisis" bid on gold, there may still be enough insurance exposure that can send it the next leg lower on confirmation that the US government will offer a viable resolution. It is worthwhile to wait for further confirmation.
http://img4.imageshack.us/img4/2713/68mv.png
A break below the 76.4% retracement level at 1239.97 could target a further drop to the June 28th low of 1180.15. A stop level for a short position entered on such a break could be set above the 61.8% retracement level at 1,276.97.