Is The Workhorse Group Stock Rally About To End?

The rally in Workhorse Group Inc. WKHS may be about to stall out.

The stock is getting close to a level that has been resistance. Sometimes, resistance levels can remain intact for a long time and that could happen here.

In February and March when the stock reached $17.85, it slammed into a wall of sellers. There were more sellers than buyers at this level. That’s why the rally stalled.

So far today, the high trade was close to $17.50. When shares got there, the sellers overpowered the buyers and knocked the price back down.

Traders need to watch this critical level closely. If Workhorse can breakout, it could make a fast and significant move higher. If not, a new downtrend may form.

The stock trades around $16.28 at publication time.