Trump SPAC partner Digital World Acquisition Corp (DWAC) soars 32% to start week

Digital World Acquisition Corp (DWAC) shares are spiking as much as 32% to $23.08 in Monday's premarket after news arrived over the weekend that Trump was nearing the announcement of a new run for president. The special purpose acquisition company (SPAC) endeavoring to merge with the parent company of Donald Trump's Truth Social app also advanced more than 7% on Friday after management postponed the shareholder meeting to decide on an extension of its time to complete a merger. By moving the stockholder meeting from November 3 to November 22, the company now has more time available to pick up necessary proxy votes to extend the merger timeline.

DWAC stock news

The market met the rescheduling with great fanfare on Friday, but it seems Donald Trump's possible presidential run is garnering even more excitement. On Friday, Politico reported that Trump may announce his 2024 presidential run on November 14. Shareholders expect this to drive more traffic to the Truth Social app. Talk of another Trump presidential run emerged after a Trump rally last week in which he said he would "very, very probably do it again." This would be after the congressional midterm elections on Tuesday, November 8, in which Trump has signaled support for a number of Republican candidates.

DWAC needs 65% of its shareholders to vote in favor of extending the deal for another year, up until September 8, 2023, to be precise. Back in September when the initial vote was scheduled, the SPAC only had 43% of shareholders voting in favor. The problem is that a large percentage of DWAC shareholders are individual investors who do not pay attention to details like proxy votes. Getting in touch with so many individuals is tedious work.

"The Special Meeting, which was originally scheduled for September 6, 2022, is being further adjourned in order to solicit more votes toward the approval to further amend the Company's amended and restated certificate of incorporation ("Extension Amendment") to extend the period of time available to complete a business combination, in three-month increments, until September 8, 2023, or such earlier date as determined by the Company's Board of Directors," the SPAC said in a statement on November 3. "The Extension Amendment would effectively provide for an additional six months, past the two three-month extensions currently permitted by the Company's existing governing documents, to complete an initial business combination."

DWAC stock forecast

Now above $20 in the premarket, DWAC bulls will definitely be taking profits near the open or once the SPAC reaches $21.88. That price level is the high from October 13 as well as open from September 20. It is also just under the swing low from June 30. Above here is the more important $25 level that acted as resistance during the first half of September. The Relative Strength Index (RSI) is eyeing a jump above the 50 level, which is normally bullish. Additionally, the 9-day moving average has moved about 10 cents ahead of the 21-day moving average, displaying the energy for a further rally. Support is around $16.

DWAC daily stock chart