This daily chart shows Trump Media & Technology Group Corp., currently trading at $34.71, slightly below the pivot level (P: $34.58) and experiencing a minor pullback. The white dashed lines represent dark pool levels, indicating significant institutional activity zones. The price is consolidating near critical levels, with a potential for either a bullish recovery or a bearish continuation, depending on upcoming price action.
Technical Analysis
Trend Analysis
Prior Trend:
The stock has exhibited a downtrend from August through mid-September, characterized by lower lows and lower highs.
A bullish reversal began in late September, leading to a strong rally into November, crossing major resistance levels and forming a clear uptrend.
Current Trend:
After hitting a peak at $53.99 (R3) in early November, the stock entered a correction phase.
The price has been consolidating near the $34.58 pivot level, testing the 8 EMA for support.
Key Levels
Resistance Levels:
R1 ($41.99): First key resistance and potential profit target for a bullish move.
R2 ($46.57): Secondary resistance where sellers might reappear.
R3 ($53.99): Major resistance, representing the upper boundary of the previous rally.
Support Levels:
S1 ($27.16): First critical support level below the current price, coinciding with prior consolidation.
S2 ($22.58): Secondary support level, marking the midpoint of the September rally.
S3 ($15.17): Significant long-term support, indicating the lower end of the bearish phase.
Dark Pool Levels:
The white dashed lines indicate dark pool trading activity, with notable levels at $34.58 (Pivot) and $30.28, both acting as significant support or resistance depending on price action.
Volume Analysis
Volume spiked during the rally in October and early November, signaling strong institutional participation.
Recent volume is declining, which is typical during consolidation, but a volume breakout would signal the next directional move.
Moving Averages (8 EMA and 21 EMA):
8 EMA (yellow line): The price is currently testing this short-term support level. Holding above this line would indicate potential bullish momentum.
21 EMA (blue line): Acts as medium-term support. A break below it would suggest bearish continuation.
Potential Scenarios
Bullish Case:
Key Factors:
The price holds above $34.58 (Pivot) and the 8 EMA, confirming strong buying interest.
A breakout above R1 ($41.99) would signal a resumption of the bullish trend.
Entry: Enter a long position above $35.00, confirming a bounce off the pivot or a breakout above the 8 EMA.
Profit Targets:
First Target: $41.99 (R1).
Second Target: $46.57 (R2).
Stretch Target: $53.99 (R3).
Stop Loss: Close below $32.75, as a break of this level invalidates the bullish setup.
Bearish Case:
Key Factors:
The price breaks below $34.58 (Pivot) and the 8 EMA, confirming selling pressure.
A breakdown below $32.75 would likely lead to further declines toward support levels.
Entry: Enter a short position below $32.75, confirming a breakdown.
Profit Targets:
First Target: $30.28 (Dark Pool Level).
Second Target: $27.16 (S1).
Stretch Target: $22.58 (S2).
Stop Loss: Close above $35.50, as it would invalidate the bearish setup.
Conclusion
The stock is currently at a critical juncture, consolidating near the $34.58 pivot level and the 8 EMA. A decisive move in either direction, accompanied by volume confirmation, will determine the next trend. Traders should watch for a breakout above $35.00 for a bullish setup or a breakdown below $32.75 for a bearish move. Clear profit targets and stop-loss levels are essential to managing risk in this trade.