Workhorse Stock Is Testing A Key Area Of Support: So Now What?

Workhorse Group Inc. WKHS shares are trading lower Wednesday, possibly after the company’s 8-K form showed the company has entered into a securities exchange deal with Antara Capital for the exchange of $82.5 million in notes for 12.13 million shares of common stock.

Workhorse was down 6.7% to $7.25.

Workhorse Daily Chart Analysis

• The stock looks to be retesting support after being able to climb back above the previous support level in what technical traders call a sideways channel.
• The $18 price level is an area where the stock has had troubles getting above in the past. This area may continue to hold as resistance in the future.
• The $7 level once held as support and the stock recently crossed back above this level and is testing it as a support level once again.
• 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) is taking a slight breather and pushed down to 53 Wednesday. This shows overall the buying pressure still slightly outweighs the selling pressure.

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

What’s Next For Workhorse?

Bullish traders are hoping the stock can hold the $7 level as support once again. Bulls are then looking to see the start of higher lows and for the stock to head toward the resistance level, eventually seeing a potential break above it.

Bearish traders are hoping the stock will be unable to hold the $7 level as support and for the stock to fall below it. Bears are then looking to see the stock start to hold this level as resistance for a possible further downward push.