Workhorse Stock Needs To Reclaim This Support Level Or It Could Get Ugly

Workhorse Group Inc. WKHS shares rallied Thursday as the sector for EV car manufacturers saw a push higher. The stock was trending on social media sites such as StockTwits Thursday.

The stock looks to be attempting to recover a support level that was recently broken.

Workhorse was up 8.4% at $6.97 at the close Thursday. 

Workhorse Daily Chart Analysis

• The stock looks to be trying to reclaim support after falling below it in what technical traders call a sideways channel.
• The $18 price level is an area where the stock has struggled to cross above in the past. This area may continue to hold as resistance in the future. The $7 level once held as support, but as the stock is below the area now, it could hold as resistance.
• 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 higher the past couple weeks and sits at 49. This shows that the stock has seen an increase in the amount of buyers, to the point where the amount of buying pressure almost equals the amount of selling pressure.

What’s Next For Workhorse?

Bullish traders are looking to see the stock be able to reclaim the support level and start to trend higher. Bulls are looking for higher lows inside the sideways channel pattern and work toward resistance. Bulls eventually want to see a break above the $18 level.

Bearish traders are currently in control of the stock and looking to see the stock hold the $7 as a place of resistance. This could hint the stock is ready for further bearish pushes in the future.