- Digital World Acquisiton Corp jumps on Monday open 29%, then falls.
- DWAC stock needs to stay above $94.
- Below $94, DWAC has support near $75.
Digital World Acquisition Corp (DWAC), the special purpose acquisition company (SPAC) run by Patrick Orlando of Benessere Investment Group that is merging with Trump Media & Technology Group, former US President Donald Trump's media company, is down more than 4% after jumping 29% on Monday's open. The volatile vehicle ran as high as $175 on Friday before closing at $94.20, which still made for a 100%-plus gain.
It was only on Thursday that news came that Trump's company had agreed to merge with DWAC in order to take his yet-to-be-created social media startup (TRUTH Social) public. The SPAC immediately took off and rose as high as 1,650% in a two-day period.
According to regulatory filings, DE Shaw, ARC Capital, Saba Capital Management, Highbridge Capital Management, Lighthouse Investment Partners, K2 Principal Fund, Atw Spac Management, Boothbay Fund Management and RG Capital Management were major investors in DWAC before it announced its merger. Lighthouse has already said it sold off its stake.
DWAC Stock Chart: Is there anything to see here?
Of course, a stock with only three days of price action cannot be easily analyzed with any accuracy, but let us try anyway.
On the 15-minute chart, it clearly appears that there is support near both Friday's close near $94, as well as Friday's double bottom near $75. Breaking either of these levels should be a sign for any traders to bail. DWAC's tentative sell-off on Monday morning still appears to be hugging that $94 line or just below it.
On the topside, staying above $100 will stop most bulls from selling, and breaking above the morning's high of $121.48 will signal that the animal spirits are still in charge. Good luck out there.
DWAC 15-minute chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains offered and challenges 1.0800
The intense recovery in the US Dollar keeps the price action in the risk complex depressed, forcing EUR/USD to recede further and put the key support at 1.0800 to the test on Friday.
GBP/USD breaks below 1.2900 on stronger Dollar
Persistent buying pressure on the Greenback has pushed GBP/USD to multi-day lows below the 1.2900 level, as investors continue to digest the recent interest rate decisions from both the Fed and the BoE.
Gold meets support around the $3,000 mark
The combined impact of a stronger US Dollar, continued profit taking, and the effects of Quadruple Witching weighed on Gold, pulling its troy ounce price down to around the pivotal $3,000 level on Friday.
US SEC Crypto Task Force to host the first-ever roundtable on crypto asset regulation
The US Securities and Exchange Commission (SEC) Crypto Task Force will host a series of roundtables to discuss key areas of interest in regulating crypto assets. The “Spring Sprint Toward Crypto Clarity” series’ first-ever roundtable begins on Friday.
Week ahead – Flash PMIs, US and UK inflation eyed as tariff war rumbles on
US PCE inflation up next, but will consumption data matter more? UK budget and CPI in focus after hawkish BoE decision. Euro turns to flash PMIs for bounce as rally runs out of steam. Inflation numbers out of Tokyo and Australia also on the agenda.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.