DWAC Stock Price: Bulls Broke the Resistance; Will it Sustain?

• The stock has been in a deep downtrend since March 2022
• The bulls have crossed the immediate resistance level.
• The MACD and RSI have seen some short-term bullish crossovers.

Digital World Acquisition Corp. (NASDAQ: DWAQ) share price has been falling since 2021 as the company is not showing any revenue on its income statements. However, the firm is burning money in its operations which is causing a negative net income year on year. These weak financials are being reflected in the stock prices because since March of 2022, DWAC stock has been in a deep downtrend. 

DWAC Stock Price Technical Analysis and Prediction 

The DWAC stock price is trading at the level of $17.6 after rising above its immediate resistance level of $17.41. In terms of support, the immediate support for the stock is at $14.80, and if the stock falls below its immediate support, then the next support is at $12.84. 

If the DWAC stock price continues to sustain above the resistance level, the new immediate resistance will be at $20.14. This means that if the stock manages to break through this resistance level, we can expect a further bullish trend in the graphs.

What are the indicators showing?

When we look at the indicators, the Moving Average Convergence Divergence (MACD) had made a bullish crossover with its Exponential Moving Average (EMA) back in August. Currently, the MACD indicator stands at 0.3804, with its EMA at 0.1673. 

The relative strength index (RSI) is showing a positive trend similar to the MACD. It has rebounded from its oversold zone of 39 at the end of August and is now at 64. However, if the RSI touches 70, a slight downward momentum can be seen in the DWAC stock price, which means that bullish traders have to keep a close eye on this indicator.

The DWAC stock price is currently between the EMAs. The 50 EMA, which is down below the price, is at $15.22, and it is giving support to the bulls. The 200EMA, on the other hand, is in the first resistance zone, with a price value of $17.48, which may reject the bullish trend if the momentum is not strong enough

Conclusion 

The price prediction for DWAC stock is likely to be bearish. The indicators are currently showing a bullish trend but sustainability is the key as we have seen above. If the stock cam sustain above the current resistance level, then it will continue the bullish rally. However, since the RSI is already in the oversold zone, it will be a challenge for the bulls to keep up with the strong momentum. 

Technical Levels

Support:$14.8, $17.8

Resistance: $17.41, $20.14

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.