The shares of Trump Media & Technology Group Corp. (DJT) took a nosedive on Monday, falling over 25% after the expiration of a lockup period that had prevented large shareholders, including Donald Trump himself, from selling their shares. This drop comes on the heels of Trump’s refusal to participate in a second debate with Vice President Kamala Harris.
The lockup period, which expired last week, had barred many large shareholders from selling their stock. While Trump has repeatedly stated his intention to hold onto his shares, other major investors, such as ARC Global, had registered shares for sale back in April. These investors now have the freedom to sell if they choose.
Meanwhile, the political landscape is also shifting. Vice President Harris has accepted CNN’s invitation for a second debate, while Trump has maintained his stance against another debate before the November election. Recent polls have indicated that Trump’s lead in the presidential race is narrowing, with Harris gaining support in several key states.
Looking at the technical indicators, Trump Media & Technology shares are currently trading well below their 50-day moving average of $24.80. Since the stock’s debut in March, the share price has fallen over 75%.
While many investors rely on earnings growth and fundamental research for valuation and forecasting, some turn to technical analysis to predict stock price trajectories. These investors often analyze trends, such as moving averages, to gauge future stock performance.
For example, if a stock consistently trades above its moving average, it is often considered a bullish signal. Investors can then extrapolate this trend into the future using a trend line. For Trump Media & Technology, the 200-day moving average stands at $33.96, significantly higher than the current price of $12.71.
Traders generally believe that when a stock is above its moving average, it indicates a positive trend, while a drop below the average signals a negative outlook. By utilizing trend lines, investors can make educated guesses about a stock’s potential future price, assuming conditions remain stable.
As of Monday’s trading, Trump Media & Technology Group shares were down 6.17% at $12.71. The stock’s future remains uncertain, but the combination of the lockup expiration, Trump’s rejection of a second debate, and Harris’s rising popularity creates a complex and volatile environment for the company.
