Digital World Acquisition Corp. (DWAC) stock price has been gaining continuously and is headed to conquer a 52-week high price of $29.80. The stock has been reducing volatility and being on the buying side. The stock has recently witnessed a breakout of a bullish flag pattern.
The price prediction illustrates that the DWAC stock price had been in a strong declining trend and eroded more than 90% of its value to trade at a low of $12.34 in March 2023. However, the price got the buyers back above the $10 level and showed a breakout after a 120-day consolidation.
The daily chart signifies that the bulls are trying to maintain the price in an uptrend. Currently, the price is stuck between the 50-day EMA and 200-day EMA. The bulls are attempting to surpass a major resistance of 200-day EMA after which it might be easier to push the price to a higher level.
The volume analysis shows that the stock has received 99.28K volume which is below the 10-day average volume of 484.22K. The company holds a market cap of $602.44 Million and has a negative EPS of 0.41.
DWAC stock option-chain analysis states that the current implied volatility in the market is 91.7% with an increment of 0.91% in the last trading session. The nearest support of $15 has an OI of 55 open contracts on the CALL side and 154 open contracts on the PUT side indicating that the bulls are confident at the $15 level and the price might show gains.
DWAC Stock Price Made Breakout of the Bullish Flag Pattern
The DWAC stock price currently trades at $16.19 with an intraday gain of 0.37% in Wednesday’s session. The price is nearing 50 EMA and a round level of $15 from where bulls might look for opportunities to add more volume to defend the level.
The price trend seems to be inclined slightly on the buyers’ side at the moment. The breakout of 200 EMA may witness aggressive buying in the stock and the price may surge to break above the 52-week high.
DWAC Stock Struggles to Surpass Above 200-EMA
The daily DWAC stock price chart shows that the price is stuck between the 50 and 200 EMA and struggling to break above 200 EMA to surge higher.
Currently, the overall technical opinion rating including RSI and MACD is signaling an 88% buy with an average short-term outlook on maintaining the current direction.
Conclusion
Digital World Acquisition Corp. (DWAC) stock price is rising and may break a 52-week high of $29.80. The stock broke a bullish flag pattern after a long decline and consolidation. The price is trying to cross the 200-EMA, which is a major resistance. The volume is low and the EPS is negative. The price is near the 50-EMA and $15, which are support levels. The price trend is slightly bullish and may see more buying if it crosses the 200-EMA.
Technical Levels
- Support levels: $13.83 and $12.35
- Resistance levels: $17.65 and $20.55
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/14/dwac-stock-price-prediction-can-dwac-conquer-52-week-high-2/