Over the past four trading days, DWAC has re-entered itself onto everyone’s watchlist. On Thursday last week, the stock price rose from $45.50 to nearly $62. Yesterday’s trading saw the price range from $55 to $66.20. So what is going on with the stock? Is there anything new to note?
DWAC is a blank-cheque company who are merging with Trump Media & Technology. Trump’s new app Truth Social is due to be released on the app store on February 21st, which also coincides with President’s Day.
Trump’s company is being marketed as an alternative to social media giants Twitter and Facebook, both of which banned him on the grounds of inciting the January 6th, 2021, riot at the U.S. Capitol. Thursday was the anniversary of that attack on Congress, which disrupted proceedings confirming the election of President Joe Biden over Trump.
Rumble markets itself as a “high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture.” It’s viewed as a conservative alternative to YouTube and has recently gained traction from a number of high-level endorsements.
The company has a mutually beneficial relationship with DWAC. They are also going public via their own SPAC merger with CF Acquisition (NASDAQ:CFVI). This may be part of the reason that DWAC rose yesterday. Rumble tweeted out that they had set new historic highs for their weekly video consumption and user uploads. All of this seems to be driving the conservative media movement which is gaining more traction.
DWAC has a great technical setup. We know that the momentum is bullish as this new wave of social media makes its mark. Resistance between $65-70 has held ever since the price fell from highs of $175. Momentum looks likely to take the price towards $70 again. If this does break through, we could see a strong move up.
Keep DWAC on watch
This could be a great one to keep on your radar if you are a day trader or swing trader. It is likely to provide lots of setups for trades that are likely to be fairly volatile because of previous price action.
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