Shares of Mode Global Holdings PLC (LON: MODE) surged 16.9% despite the lack of significant releases from the fintech payments company.
Today’s rally could be attributed to a bounce of a crucial support zone as buyers stepped in to defend the level and prevent prices from heading much lower.
Bullish traders have defended this level several times, indicating that they believe that Mode Global’s shares should not trade at prices below 51p.
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The payments company recently completed an oversubscribed share placement that raised over £6 million, triggering the latest decline, which was shallow as buyers kept stepping in.
Investors appear optimistic about the company’s prospects, which reported a surge in user numbers in December 2020 combined with rising trading volumes boosted by its growing user base.
Mode Global unveiled ambitious growth plans following its share placement’s success. It promised to launch new payments solutions built on open banking platforms to eliminate the use of credit and debit cards.
The company also intends to connect more UK and European countries to its growing clientele in China and other countries. It will also boost its marketing efforts on WeChat and other platforms to attract more Chinese clients.
Mode also promised to buy more Bitcoin to ensure that the crypto makes up 10% of its Treasury holdings at all times.
The last time we covered the stock in February, I expected either the 56p or 52p levels to hold. Well, it seems like the 52p level will hold, and we could potentially get a rally soon.
Mode Global share price.
Mode Global shares soared 16.98% to trade at 62p, rising from Wednesday’s closing price of 53p.