The stock of Trump Media & Technology Group, owned by former US President Donald Trump, dropped by 4% after he was convicted of 34 felony counts for falsifying business records. The conviction came after the New York state criminal jury found Trump guilty of paying off a pornstar he had an affair with. Trump is expected to be sentenced on July 11, but it is unlikely that he will face imprisonment given that this is his first offense. Despite the conviction, Trump is still expected to run for the presidential election, but he will not be able to issue pardons for himself on state charges if he were to win.
The NASDAQ also experienced a 1.1% drop on Friday morning, despite lower than expected inflation numbers from the Federal Reserve’s PCE report. Trump Media stock, on the other hand, fluctuated between $45 to $50, with historical support expected at around $42 if the stock were to fall below the current range. The stock touched both the 9-day and 20-day EMA, reaching a high of $53.92. A return to levels above $55 could signal a rally for the stock in the near future.
Legal experts predict that Trump may face fines and parole instead of prison time due to his first-time offender status. However, the conviction is seen as a setback for Trump’s TRUTH Social app, owned by Trump Media & Technology Group. Despite calls for leniency from Trump’s political supporters, the conviction is viewed as a “miscarriage of justice” on social media platforms. If DJT stock were to fall below the current support levels, it may face further challenges in the market.
Overall, the recent conviction of Donald Trump for falsifying business records has had an impact on Trump Media & Technology Group’s stock price, with a 4% drop on Friday. The legal implications of the conviction are yet to be fully realized, but Trump’s status as a first-time offender may result in a lenient sentence. As the stock continues to trade within the $45 to $50 range, investors will be watching closely to see if it can maintain support at $42 and potentially rally back above $55. The future of Trump Media & Technology Group remains uncertain in light of these recent developments.
