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

Simon Mugo trader
Updated 11 Jan 2021

Practice Stock Trading
Mode Global Banking

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 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