Trump Media & Technology’s stock chart is showing signs of weakness following a post-merger jump last week, causing concern for shareholders. To prevent further selloff, the stock needs to exhibit strength as soon as possible, with Friday being a critical day for this.
Looking at the technical evaluation of the stock, it is evident that the stock action from the beginning of 2021 has been volatile. The on-balance volume, which weighs stock moves by the number of shares traded, has been fluctuating, indicating uncertainty in the market.
Considering this year’s stock moves and trading volume, it is clear that the stock price and on-balance volume rose following the merger completion but have since reversed. The lack of support for higher prices is a cause for concern, with the need for a fundamental growth driver to turn things around.
The candlestick chart information for Trump Media reveals a lack of uptrend at work, with last week starting strong but then stagnating. This week’s performance has been weak, with the stock struggling to rise above the $50 barrier, further intensifying worries among shareholders.
While there is potential for growth and success in the future for Trump Media, today’s reality of low sales and negative earnings does not support its high stock price. Investment analysts will need to carefully evaluate the company and determine a valuation based on reasonable assumptions.
In conclusion, Trump Media is no longer a speculative stock but must demonstrate strength in its stock price to reassure investors. If the stock fails to rise above $50 on Friday, it may be a risky investment, signaling the need for shareholders to consider other options.
