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- 1 DWAC stock price gained 12% in the last week to close at $104.49.
- 2 Digital World Acquisition Crop. stock price took support from the key moving average, 50-day EMA.
- 3 DWAC’s share price chart is forming a bullish flag pattern.
Digital World Acquisition Crop. (DWAC stock) price surged nearly 12% in the last week and closed at $16.43. The price action analysis states that the price has been forming a parallel channel pattern popularly known as a bullish flag. Analysts say that the price trades at the upper edge of the channel which might be the make-or-break level for the stock.
The DWAC Stock daily chart shows that the price was been in a long-term declining trend since March 2023. The price declined forming lower highs and lower lows. However, the price stopped forming new lows in March and consolidated at the lower levels showing the accumulation of the buyers at the lower levels.
Recently, the stock opened a gap-up which created an imbalance and the stock broke above the consolidation to change its trend to an uptrend. The price surged from $13 to a high of $20. Thereafter, the quick gain in the stock led to profit booking and the decline forming a channel pattern.
Digital World Aquisitiion Crop. company was formed for the purpose of acquiring, and engaging in a share exchange and purchasing all or substantial assets of other business entities. The company founded in 2020 holds a market cap of $614.34 Million.
DWAC stock option-chain analysis states that the current implied volatility in the market is 131.89% with an increment of 6.38% in the last trading session. The nearest support of $15 has an OI of 237 open contracts on the CALL side and 172 open contracts on the PUT side indicating that the Sellers are in domination at the support which indicates that the price may possibly decline or face a struggle to break above.
DWAC Stock Price Foormed A Channel Pattern Over The Daily Timeframe
The DWAC stock price gained nearly 12% in the last week and managed to close at the upper level of the channel. The price also sustained at the upper level showing the buyer’s presence at the lower levels.
However, the price could not break above the channel pattern which shows that the sellers are still active at the upper levels. Also, as per option data, the $15 level shows the domination of sellers indicating a weakness and the price may decline.
Analysts say that the price is in the control of the sellers until it remains in the channel. The breakout of the channel may invite aggressive buyers to enter the market and push the price to higher levels.
The DWAC Stock Took Support From Key Moving Average 50-EMA
The daily DWAC stock price chart shows that the price made a breakout of the key moving averages and recently, the price took support from the 50 EMA indicating the short-term bullishness in the stock.
Currently, the overall Technical Opinion rating including RSI and MACD is signaling a 72% buy with the strongest short-term outlook on maintaining the current direction.
Conclusion
Digital World Acquisition Crop. (DWAC stock) price surged from $13 to $20 and then declined forming a bullish flag pattern. The price closed at the upper edge of the channel at $16.43 on Friday and sustained on Monday, but could not break out of it. The sellers are still dominant at the upper levels and the option data shows weakness at $15. The price may continue to fall unless it breaks out of the channel. Analysts are bearish on the stock until it changes its trend.
Technical Levels
- Support levels: $13.82 and $12.34.
- Resistance levels: $17.60 and $20.53.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
