The charts of blank check Digital World Acquisition Corp. (DWAC) are weak and pointed lower Thursday as the SPAC is trying to extend the deadline to complete its merger with former President Donald Trump's Trump Media and Technology Group. Let's check out two charts to see about the technical prospects.
In the daily bar chart of DWAC, below, we see a downtrend. The shares trade below the negatively sloped 50-day and 200-day moving average lines. The daily On-Balance-Volume (OBV) line shows weakness from March. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this daily Point and Figure chart of DWAC, below, we can see a downside price target in the $15-$14 area.
Bottom-line strategy: The charts are bearish and the strategy is simple - avoid the long side of DWAC.
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We got a broad rally on Friday after a week of narrow action -- but once the debt ceiling news hits, the market will go on to the next stage of action.
I'm constantly looking for opportunities in this overvalued market.
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