Benzinga - Digital World Acquisition Corp (NASDAQ: DWAC) was slumping about 7% lower on Tuesday as former President Donald Trump made his way to a courthouse in Lower Manhattan to be arraigned on multiple charges related to a hush payment made to adult film star Stormy Daniels.
On his way to being formally arrested, and making history as the first former president to ever face criminal charges, Trump or one of his aides took to Truth Social, owned by Trump Media & Technology Group (which is Digital World’s acquisition target) to comment on the event. “Heading to Lower Manhattan, the Courthouse. Seems so SURREAL –WOW, they are going to ARREST ME. Can’t believe this is happening in America. MAGA.”
DWAC has traded significantly higher since the former president was indicted last week. Traders and investors likely believe Trump’s decision to stick to Truth Social amid his legal woes, rather than returning to Twitter, will drive traffic to Trump’s platform.
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The Digital World Chart: Digital World entered into its most recent uptrend on March 24 and has since made a series of higher highs and higher lows. The SPAC’s most recent higher high was formed on Monday at $16 and the most recent higher low was printed at the $13.05 mark on March 30.
- On Tuesday, Digital World was looking to print a hammer candlestick on the daily chart, which could indicate higher prices will come on Wednesday. If that happens, Tuesday’s low-of-day will serve as the next higher low within the uptrend pattern.
- Digital World is trading in line with the 50-day simple moving average (SMA) and above the eight-day and 21-day exponential moving averages, which is bullish. If Digital World trades higher on Wednesday to continue in its trend, the stock will regain the 50-day SMA as support.
- Bearish traders want to see big bearish volume come in and break Digital World down under the $13 mark, which will negate the uptrend.
- Digital World has resistance above at $16.18 and $17.33 and support below at $14.16 and $12.62.
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This illustration was generated using artificial intelligence via MidJourney.
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