Shares of online wallet operator Mode Global Holdings PLC (LON: MODE) rallied 14.1% despite the company's lack of news releases as investors bought the company’s shares triggering the rally.
Mode shares have fallen heavily since the last time we covered the stock in early January. We noted that it had formed a parabolic rally, usually followed by a selloff that reverses most of the gains.
Mode shares fell from a high of 77p on 8th January to a low of 40p three weeks later on 27th January just like we anticipated. The fintech company’s shares have struggled to rally from its recent lows since it is rare to have a v-shaped recovery.
I now expect Mode shares to trade sideways with a bullish bias and I would not rule out a potential rally soon.
Mode started trading on London’s AIM market in October 2020 following a $10 million IPO and has been rapidly growing its user base since then. The company also benefitted from the Bitcoin rally having invested $1 million in Bitcoin shortly after its IPO.
The company’s growth prospects are quite promising, and any positive announcements by the firm could trigger the next rally.
Mode is set to benefit from the expected rise in e-commerce transactions in 2021 due to the coronavirus lockdown measures that fueled the industry’s massive growth last year.
Mode Global share price
Model Global shares rallied 14.13% higher to trade at 52.5p having risen from Wednesday’s closing price of 46p.