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Mode Global Shares Fell 8.12% Today After a Massive Parabolic Rally

Shares of Mode Global Holdings PLC (LON: MODE) fell 8.12% today despite the lack of major releases from the UK fintech group that recently reported record-breaking figures for December based on its Bitcoin investments.

The fintech company used up to 10% of its IPO proceeds to purchase Bitcoin in October 2020 and benefited from the cryptocurrency’s massive rally in December being up 100% on its position as of last week.

Mode Global also reported that trading volumes in December were up 1500%, while user numbers were up 500% as compared to August figures. The company started trading on London’s AIM on October 5, 2020 following an IPO that raised $10 million.

The company also revealed that user numbers were up 40% in the first few days of January resulting in a major rally that ended on Friday having formed a parabolic shape that is typically followed by a significant selloff.

The fact that there were no negative fundamental triggers behind the 2-day selloff that started on Friday indicates that buyers are taking profits on their positions following the rally that started on January 5 after the company’s announcement.

Investors interested in the company may find that the latest downtrend presents an excellent opportunity to create new positions or add to existing ones.*

*This is not investment advice.

Mode share price

Tradingview chart of Mode share price 11012021

Mode Global shares fell 8.12% to trade at 61.10p having fallen from Friday’s closing price of 66.5p.

Simon Mugo
Simon Mugo
Contributor

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading

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