Workhorse Group Stock Flies As Retail Traders Try To Squeeze Shorts

Workhorse Group Inc. WKHS shares gapped higher Thursday after retail traders flooded into the stock trying to take advantage of the high short interest. The short float percentage in the stock is showing to be above 42%.

Workhorse Group was up 26.6% at $14.58 at last check. Below is a technical look at the stock.

Workhorse Group Daily Chart Analysis:

• Shares have been falling the past few months in a downward channel that may also be called a falling wedge.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average is a place where the stock may find resistance.

Key Levels To Watch:

• Workhorse Group shares gapped higher Thursday, potentially breaking out of the falling wedge pattern.
• The falling wedge pattern is considered a bullish reversal pattern that happens when the price is condensed and squeezed to a point while trading in a downwards trend.
• A break above pattern resistance could let the stock move higher, while a break below pattern support may hint that the stock may see a lower push.

What’s Next?

Bullish technical traders would like to see consolidation for a time before the stock may see another move. Bulls want to see the stock hold the gains it made as it consolidates.

Bearish technical traders would like to see the stock fall to the area inside of the wedge. If the pattern support were to break, the stock could see a further downward push.