After starting the year strong and more doubling its value between early January and late February – and experiencing a new rally in March, which sent it to its yearly highs above $66 – Trump Media (NASDAQ: DJT) stock has seemingly entered a downward spiral in more recent months.
Though the shares are, at press time on August 14, 37.42% in the green in the year-to-date (YTD) chart, they have fallen as much as 40.91% in the last 30 days and 3.62% during the latest full trading session on Tuesday, August 13. DJT price today, at press time, stands at $23.98.
Additionally, the impact of Tuesday trading is set to be felt in the weeks to come as they resulted in the formation of DJT stock’s first-ever death cross.
Picks for you
A death cross is a bearish chart pattern that forms when a short-term moving average (MA) – usually a 50-day moving average – crosses below a long-term moving average – usually a 200-day moving average. It tends to signal a period of stock market decline, though there are no conclusive, general rules of thumb for how large the decline will be.
How low will DJT stock go?
Still, Trump Media’s recent performance and its press time support and resistance levels may offer a glimpse into what is ahead for DJT shares.
Given that the stock has been trading downward in the last 24 hours, one week, and one month, with only 10 green days out of the last 30, it is facing substantial selling pressure. However, given that it is trading near the upper bound of its next important support range, it may be set to find its footing soon.
On the other hand, should DJT plunge below the $21 to $23 zone, the stock might enter a freefall, potentially dropping to a psychologically important level around $15 – the price it has traded near the longest between September 2022 and January 2024.
The rise in short interest also demonstrates the strong bearish sentiment affecting DJT stock as it had risen nearly 60% between late June and late July from 5,219,586 to 8,282,108 shares.
It is, nonetheless, worth pointing out that such a measure is backward-looking and the sentiment surrounding Trump Media will be easier to gauge accurately once the short position data for the first half of August is published.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
