Acacia Mining

Monday, 25th June 2018 09:42 - by Rajan Dhall

Finally some positive news for Acacia and Barrick, Acacia have stated in an RNS this morning they are continuing to support Barrick with their discussions. Barrick have said they will not be providing a timeline on the talks but they have been 'constructive' and 'progress has been made on the drafting of definitive agreements necessary for the implementation of the proposed framework'. This is welcome news as on the 24th July 2017 a UK financial newspaper stated that gold company has just been told it owes $190bn in unpaid taxes and penalties by the government of Tanzania. As there is not too much detail in the reports this morning we must watch carefully as any updates trickle in. 

On the chart we can see price action has been very bearish of late. I have drawn some key areas of resistance to keep an eye on, but I want to speak about the diagonal downtrend line. If we see a break of this level (with enough volume) there is a chance we could see 200p tested. I do not normally add indicators but today I have added the on balance volume (OBV), this is useful to keep an eye on if some large bids come to the party. You can see we have recently had an uptick in the indicator and I am not saying someone on the inside knows what's going on, but some significant volume has been put through at the lows.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.