Worth watching: Mode Global and Condor Gold

These two small-cap stocks have piqued the interest of our technical analyst. Here's what he thinks the price might do.

Mode Global (LSE:MODE) appears to be a company in the right place at the right time. Formed just a few years ago, their stated aim is to ‘become a financial services business delivering the products of tomorrow, today’. 

Their website is alive with current buzzwords and even the classic ‘fintech’ is now presented with a capital ‘F’, obviously continuing attempts to make Fintech a real word. In fairness, it should be as one of the earlier components of the Fintech field, PayPal (NASDAQ:PYPL), continue to perform quite nicely.

Our eyebrows were raised, reading that Mode Global are already in partnership with Tencent (SEHK:700) and Alibaba (NYSE:BABA), both quite big deals.

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Fintech, very basically, can be thought of as ongoing (successful) attempts to replace credit card companies as the method for online purchases. In this arena, Paypal can obviously take a bow, but the potentials continue to be discovered. 

Today, watching someone pay at a checkout by using their smartphone, was just another application where financial technology is increasingly used. No credit cards nor debit cards were harmed in the process, a single act which must be truly frightening to the entrenched players in the field of retail shopping. It’s easy to suspect some of the major banks must be nervously looking over their shoulder, when new start-ups appear, their size able to make the transition from “good idea” to “let’s try it”, faster than traditional bank customers can type their code into an ATM.

We’ve run the numbers against Mode, and the immediate share price prospects looking fairly useful. From our perspective, we can allocate 56.5p as a potential trigger level. In the event this level is exceeded, gains toward an initial 62p look possible with our longer-term secondary (or later that day, if good news is involved) calculating at a very possible 70p. 

Visually, the share needs trade above 83.5p to enter ‘illogical’ territory where we can no longer work out upward numbers. In reality, we suspect we shall need to revisit the company should the 70p level be exceeded.

Source: Trends and Targets. Past performance is not a guide to future performance

Condor Gold 

We’ve received a few emails asking us to look at Condor Gold (LSE:CNR). Their share price is presently trading around 46.5p and appears to be adhering pretty firmly to the Blue downtrend on the chart, regardless of what’s actually happening to the price of gold. 

Invariably, this behaviour tends to result in a situation where movement, if triggered, tends be faster than the panic rush to change channel if anything to do with the Scottish football team comes on TV. 

On the chart below, we’ve painted a little circle around a share price movement recently. This surge to 52.5p, quickly reversed below the trend, gives what should be a reliable starting point, as movement above this level works out with an initial ambition of 61p. If exceeded, our secondary calculates at 75p and visually, both target levels make quite a lot of sense.

Perhaps Condor shall prove worth watching. We’d panic, if it managed below 35p.

Source: Trends and Targets. Past performance is not a guide to future performance