Trump Media & Technology Group Corp. (NASDAQ:DJT) is trending after President Donald Trump promised a $5,000 “dividend” to every adult U.S. citizen if Republicans win control of both the House and Senate in the upcoming midterm elections.
- Trump Media & Technology stock is showing upward momentum. What’s the outlook for DJT shares?
Trump’s $5,000 Midterm Pledge
According to CNBC, Trump made the pledge Wednesday at the GOP’s midterm convention in Dallas, saying, “if the Republicans win the House of Representatives and the United States Senate, both of them… because of our tremendous strength and success economically, I will issue a dividend to every adult citizen in the United States of America for $5,000.” The proposed payout is estimated to cost more than $1 trillion, raising questions about funding and its impact on the federal budget, which is already running a deficit nearing $1.8 trillion for the fiscal year-to-date.
The proposal could also face legal obstacles. Under federal law, offering payments to induce voting behavior is a criminal offense. CNBC noted that Trump has made similar unfulfilled promises before, including a proposed $5,000 “DOGE dividend” and a $2,000 “tariff rebate,” neither of which materialized.
A Stock Down Nearly 49% Over the Past Year
Trump Media & Technology is currently facing a bearish trend, with its price trading below all key moving averages. The 20-day SMA is 2.4% below the price, while the 50-day SMA is 4.3% below, indicating a lack of bullish momentum in the near term.
The RSI is currently at 54.40, which is considered neutral, suggesting that the stock isn’t showing strong momentum in either direction. This level indicates that traders should watch for potential shifts, as a move towards overbought or oversold territory could signal a change in price action.
MACD is below its signal line, indicating bearish pressure on Trump Media & Technology’s stock. This suggests that the momentum is currently favoring sellers, and traders should be cautious about entering long positions until a reversal is confirmed.
Key support is at 8.00, while resistance is at 10.00. If the price approaches support and fails to hold, it could signal further downside, whereas a break above resistance might indicate a potential trend reversal.
Currently, Trump Media & Technology’s stock is in a bearish long-term trend, as evidenced by the 50-day SMA being below the 200-day SMA. This relationship suggests that traders should remain cautious, as the overall trend has been downward.
Over the past 12 months, Trump Media & Technology’s stock has declined by 48.91%, reflecting significant challenges in maintaining upward momentum. This long-term performance underscores the need for traders to be vigilant and consider broader market conditions before making decisions.
Trump Media & Technology Stock Trades Flat
DJT Price Action: At the time of publication, Trump Media and Technology shares are trading 0.34% higher at $8.74, according to data from Benzinga Pro.
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