Digital World Acquisition Corp Stock News: DWAC down from open

Digital World Acquisiton Corp jumps on Monday open 29%, then falls.
DWAC stock needs to stay above $94.
Below $94, DWAC has support near $75.

Clay Webster FXStreet

Digital World Acquisition Corp (DWAC), the special purpose acquisition company (SPAC) run by Patrick Orlando of Benessere Investment Group that is merging with Trump Media & Technology Group, former US President Donald Trump's media company, is down more than 4% after jumping 29% on Monday's open. The volatile vehicle ran as high as $175 on Friday before closing at $94.20, which still made for a 100%-plus gain.

It was only on Thursday that news came that Trump's company had agreed to merge with DWAC in order to take his yet-to-be-created social media startup (TRUTH Social) public. The SPAC immediately took off and rose as high as 1,650% in a two-day period.

According to regulatory filings, DE Shaw, ARC Capital, Saba Capital Management, Highbridge Capital Management, Lighthouse Investment Partners, K2 Principal Fund, Atw Spac Management, Boothbay Fund Management and RG Capital Management were major investors in DWAC before it announced its merger. Lighthouse has already said it sold off its stake.

DWAC Stock Chart: Is there anything to see here?

Of course, a stock with only three days of price action cannot be easily analyzed with any accuracy, but let us try anyway.

On the 15-minute chart, it clearly appears that there is support near both Friday's close near $94, as well as Friday's double bottom near $75. Breaking either of these levels should be a sign for any traders to bail. DWAC's tentative sell-off on Monday morning still appears to be hugging that $94 line or just below it.

On the topside, staying above $100 will stop most bulls from selling, and breaking above the morning's high of $121.48 will signal that the animal spirits are still in charge. Good luck out there.

DWAC 15-minute chart

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Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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