Workhorse Stock Needs A Bounce Soon If It's Going To See A Reversal

Workhorse Group Inc. WKHS shares are cooling off, trading lower on Wednesday. There appears to be no evident company news about why the stock is moving. The stock is nearing support in a possible technical pattern.

Workhorse was down 4.09% at $8.79 at last check Wednesday.

Workhorse Daily Chart Analysis

The stock has formed higher lows and now looks to be testing support in what technical traders call an ascending triangle pattern.

• The $18 price level is an area where the stock struggles to cross above. The higher low trendline has begun to form and is a place the stock may find support. These levels may continue to hold as support and resistance in the future until one level is broken.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The Relative Strength Index (RSI) has been moving lower the past few days and the indicator now sits at 37. The stock is trading in a time where there is more selling pressure than buying pressure.

See Also: How To Buy Workhorse Group Inc Stock

What’s Next For Workhorse?

Bullish traders are looking to see the stock bounce off support and start heading higher. Bulls want to see the price stay above the higher low trendline until it reaches resistance and can breakout. Bulls want to see a consolidation after the stock breaks out for a possible further move.

Bears are looking for the stock to fall below the higher low trendline and possibly cause the beginning of a downtrend. Bears would also like to see the RSI begin to fall further and break into the oversold area.

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