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High volatility in Digital World Acquisition Corp. stock price on Thursday which ended trading at $49.08

StockInvest.us, 1 month ago


The Digital World Acquisition Corp. stock price gained 382.60% on the last trading day (Thursday, 21st Oct 2021), rising from $10.17 to $49.08. During the day the stock fluctuated 306.73% from a day low at $14.26 to a day high of $58.00. The price has risen in 6 of the last 10 days and is up by 382.6% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 11 million more shares were traded than the day before. In total, 11 million shares were bought and sold for approximately $539.37 million.

The stock has broken the very wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $17.15, a level that may pose a second chance to hit a runner.

Digital World Acquisition Corp.

The Digital World Acquisition Corp. stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $15.73 and $11.24. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, October 11, 2021, and so far it has risen 385.94%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $43.74 between high and low, or 306.73%. For the last week the stock has had a daily average volatility of 61.85%.

The Digital World Acquisition Corp. stock is extremely overbought on RSI14 (100). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Digital World Acquisition Corp. holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Check full Digital World Acquisition Corp. forecast and analysis here.