Trump Media & Technology Group Stock Surges as Musk Backs Trump

7 окт.

Shares of Trump Media & Technology Group (NASDAQ: DJT) surged by over 15% on Monday, buoyed by renewed political momentum after former President Donald Trump’s rally in Butler, Pennsylvania, where he appeared alongside Tesla CEO Elon Musk. The event, held just a day prior, saw Musk publicly endorse Trump for president, a move that has energized Trump’s supporters and investors alike. Musk’s endorsement, along with the rally’s broader media coverage, has acted as a significant catalyst for DJT stock, which has seen a strong uptick in trading volume and investor interest.

Musk-Backed Momentum and Media Buzz
The rally in Butler marked a high-profile return for Trump to the site of a previous assassination attempt in July, with Musk's appearance further amplifying the media attention. In his 90-minute speech, Trump spoke at length about his vision for the country, while Musk labeled himself “Dark MAGA” and expressed strong support for Trump’s re-election, stating, “President Trump must win to preserve the Constitution.” This public backing by one of the world's most influential tech entrepreneurs has provided a jolt to DJT, which had previously been on a steady decline.

Adding to this momentum is the recent U.S. Supreme Court dismissal of a lawsuit filed by Musk’s X Corp. The lawsuit alleged that Special Counsel Jack Smith violated the First Amendment in obtaining a search warrant for Trump's communications on Twitter. The dismissal was seen as a victory for both Trump Media and Musk, helping to restore some investor confidence.

However, challenges remain. Trump Media recently revealed in regulatory filings that its Chief Operating Officer, Andrew Northwall, resigned in late September, marking yet another leadership shake-up within the company. Additionally, the firm is set to release nearly 800,000 shares of its stock to an early investor, per a Delaware judge’s ruling. Despite these internal challenges, the company’s chief product, Truth Social, continues to depend heavily on Trump’s popularity and his continued presence on the platform.

Technical Outlook
Technically, DJT appears to be in the early stages of a potential bullish rebound. The stock is currently up 10.67% as of this writing, capitalizing on the rally’s momentum and Musk’s endorsement. However, DJT has been in a falling trend pattern since its all-time high (ATH) back in March 2024, signaling a long-term downward trend.

The Relative Strength Index (RSI) stands at 54.54, indicating that the stock is not yet overbought and has room to grow further. This gives traders optimism that the stock could continue its upward trajectory. A key concern, however, is that DJT is still trading below critical moving averages (MAs), particularly the 50-day and 200-day MAs. These levels represent important resistance points that DJT will need to break through to confirm a sustained bullish reversal.

Price targets suggest that the next major pivot for the stock is set at $33, aligning with the 200-day MA. Should DJT continue to capitalize on its recent gains, breaking through this level would be a strong indicator of further upward movement. However, until the stock moves above these key averages, caution is warranted as DJT remains vulnerable to retracement.

Outlook: Political Tailwinds Could Drive Future Gains
The rally in Butler, Musk’s endorsement, and recent legal victories have given DJT a fresh boost of momentum, but the stock still has significant hurdles to overcome. Investors are eyeing the upcoming 2024 election cycle as a potential catalyst for further gains, particularly if Trump’s popularity continues to rise.

While the stock is still trading below its key moving averages, the formation of a bullish pattern and steady RSI suggest that there may be room for further upside. As DJT recovers from its post-March lows, long-term investors and traders will be watching closely to see if the stock can break through the $33 resistance level, which could signal a full-blown reversal of its current trend.

For now, DJT is riding a wave of political and media momentum, and the road ahead is one of cautious optimism. Investors would do well to keep an eye on both Trump’s political fortunes and the company’s internal management developments as key factors that will influence the stock’s trajectory.