Here’s how I’m trading Digital World Acquisition ($DWAC). (January 28, 2022)
DWAC
I want to look at Digital World Acquisition ( NASDAQ: DWAC ) here. This is the Trump thing, I don’t know all the details I just look at the charts, but I know it has something to do with him. And also, as I understand it, the network, the social network, the TV show, the interplanetary spaceship, whatever it is that they are doing here.
I think it launches the first week of February or the second week or something like that. So I think we could look for some kind of catalyst to push this thing higher. But even if that is not the case you have got to look at this pattern. This was the volatility squeeze and this was the breakout from that squeeze. You can’t see it here but was actually on really impressive volume.
All this stuff was boring, nobody wanted it, nobody cared about it. It broke out here. That was what I would call a Phase 1 breakout and Phase 2 is the pullback to the test and it tested 50. And then ran up and broke out to a new high, that’s the start of Phase 3 then we’ve got fractals here. And so we’ve got a more substantial Phase 1, a pullback to, you could even say to right here, to Monday of this week. And now this is looking for some kind of move up here.
Frankly, that’s really my trade on this. Watch for this, watch this next week, and if it starts moving go ahead and take this for a ride. It’s one of the few that I look at right here and say, “Do you know what? This could be a really nice trade next week,” you just have to manage your risk. Start small, keep your stop below, say, Friday’s intraday low. If it falls below there you don’t need to wait any longer, go ahead and get out, but I like the way this thing is trading.
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