This morning Asia Broadband Inc (OTCMKTS:AABB) announced that it has inked a letter of intent in relation to the acquisition of gold mining property in the Acaponeta area in Nayarit, Mexico. Will it be enough to stem the selling?
Market Action
Shares of AABB are trading slightly lower in Thursday’s session. As of 12:30, the stock is .22 down .0085 off 3.7%. Volume is light at 13.7 million shares and 2206 trades have taken place. AABB has been trading lower since March and has not been able to put together two winning days in a row for a month. Yesterday was a rare up day and paired with some news today had the potential to add to those gains. If the bulls are going to take this higher a strong finish today would be a good start. If the bears continue to win the next stop may be the .10 support area from mid-March where the stock turned after its big February run. Potential pivot points to keep an eye on are .239, .25, and .273 above and .216, .204 and .181 below.
Asia Broadband states in their release “In the coming weeks, the Company will be conducting further due diligence and continuing its negotiations to acquire the economical $11 million property. AABB is expecting to confirm high-grade assay results in the coming week from the Company’s initial due diligence activities on the property, as the mapping and rock sampling program continues. Company management is exhilarated with the Acaponeta project for its potential for rapid development, high production, and low operating costs.”
Keep an eye on AABB. The sellers are winning right now but there may be some light at the end of the tunnel for the bulls.
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