Benzinga - Digital World Acquisition Corp (NASDAQ: DWAC) gapped down over 6% on Thursday, in tandem with the general market, which saw the SPDR S&P 500 start the trading session 1.34% below Wednesday’s closing price after initial jobless claims showed the economy was failing to slow.
The SPAC, which plans to merge with former President Donald Trump’s Media & Technology Group, has seen a high level of volatility over recent trading days, beginning on Nov. 7 when Digital World soared 66%. On that day, several reports said Trump planned to announce a presidential run in the upcoming 2024 election.
The 45th president of the United States officially announced he plans to run on Tuesday evening. The stock plunged over 23% over the course of Tuesday and Wednesday, continuing to slide with bearish momentum on Thursday.
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The Digital World Chart: After surging toward the $30 mark on Nov. 7, Digital World entered a downtrend on high volatility. The most recent lower high was formed on Nov. 14 at $28.85 and the most recent low was printed at the $20.43 mark on Nov. 10.
- On Thursday, Digital World slumped under the most recent low to hit a low-of-day at the $19.23 mark. The stock was working to print a doji candlestick, which could indicate the next lower low has been created and a bounce to the upside is on the horizon for Friday.
- When Digital World traded lower on Thursday, the stock held support at the 50-day simple moving average, which indicates longer-term sentiment remains bullish. If the stock bounces on Friday, traders would like to see Digital World regain the 21-day exponential moving average as support.
- Digital World has resistance above at $19.64 and $23.79 and support below at $17.33 and $16.18.
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