Will Acacia Mining turn, or will it continue to rise beyond Oct ’17 high of 258p?

• The chart shows the Acacia Mining price action since late November.
• Shares in a monthlong uptrend from 178p recent lows; now at 198p.
• 7 Nov: Shares on momentum after Barrick Gold CEO said he would consider full takeover of Acacia Mining.
• 28 Nov: Said it will receive $4m from Sarama Resources terminating its earn-in agreement at the South Hounde project in Burkina Faso.
• Shares -3.35% from 2018 highs; +112.8% from 2018 lows; flat year-to-date.
• In the past month, the shares have risen over 15.5%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Acacia Mining – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Acacia Mining using a CFD, at the current price of 198p. To do this, you need £2,000.

Let’s assume Acacia Mining trend continues to rise beyond Oct ’17 high of 258p (+30%). Your profit would be £3000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Acacia Mining falls 9% and hits your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.