Digital World Plunges On 'Major Announcement' From Trump: 'America Needs ...' More NFTs?

Zinger Key Points
  • Digital World was breaking down bearishly from a triangle pattern, confirming the downtrend is intact.
  • If the SPAC closes the session near the low-of-day, lower prices could come Friday.

Digital World Acquisition Corp DWAC was sliding about 3% lower on Thursday, ahead of a “major announcement” former President Donald Trump teased on the SPAC's acquisition targeted Truth Social.

After the former president's announcement turned out to be an NFT collection of himself, Digital World dropped an additional 3%. 

In October 2020, after Trump was sick with COVID-19, his elaborate plan to emerge from Walter Reed National Military Medical Center to reveal a Superman logo didn’t pan out. But, the 45th president salvaged the idea on Wednesday in an animated video.

During the 15-second clip, a younger, fitter, cartoon image of Trump appeared, where the character was ripping back a dress shirt to reveal a superhero chest plate beneath. Instead of the Superman logo, however, the letter “T” was front and center.

The video started with Trump addressing his audience with “America needs a superhero.”

Prior to the official announcement, some users on social media spent some time guessing that the former “The Apprentice” host could announce his running mate for the 2024 election or that he’d decided to run as an independent.

Other less serious ideas of what Trump may be planning to announce included, his own podcast, a set of trading cards and his own brand of stain-free ketchup. Others hoped he would announce that he’d decided not to run for president at all. The trading card guess turned out to be one of the most accurate.

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The Digital World Chart: On Thursday, Digital World appeared to be breaking bearishly down from the lower horizontal trendline of a triangle pattern. The pattern leaned bearish because the stock had tested the lower trendline multiple times since Nov. 10, weakening the support zone.

  • The move lower also confirmed that the downtrend is still intact. The most recent lower high within the pattern was printed on Wednesday at $22.68 and the most recent confirmed lower was formed at the $20.80 mark on Dec. 7.
  • If Digital World closes the trading day near its low-of-day price, the stock will print a bearish Marubozu candlestick, which could indicate lower prices will come again on Friday. If Digital World bounces up to close the session with a lower wick, the temporary bottom could be in and the SPAC may bounce Friday.
  • Digital World has resistance above at $23.79 and $27.48 and support below at $19.64 and $17.33.
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Posted In: Long IdeasShort IdeasTechnicalsPoliticsSmall CapTrading IdeasGeneralDonald TrumpNFTNFTsnon-fungible tokensSPACSPACsTRUTH Social
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