Workhorse Is Rallying Today: Is It A Reversal Or A Fakeout?

Workhorse Group Inc. WKHS shares are trading higher Tuesday after the company reported fourth-quarter results. The company said it expects to sell about 250 vehicles in 2022 and generate at least $25 million in revenue. The stock was trending throughout the day on social media sites such as Stocktwits.

Workhorse was up 9.58% at $3.43 at last check.

See Related: Why Workhorse Shares Are Rising

Workhorse Daily Chart Analysis

• The stock is seeing a slight bounce in a long term downward trend. WKHS was trading in a sideways channel, but fell below the area and has been moving bearishly since. The $7 level was an area of support for the stock and will now likely act as resistance if the stock can reach the zone once again.
• Workhorse trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been pushing higher for the past few weeks and now sits at 51. This shows that there is slightly more buying pressure in the market than there is selling pressure. If the RSI continues to rise, the stock could see a reversal in time.

What’s Next For Workhorse?

Workhorse is seeing a slight bounce in a long downward trend and will need to continue to push higher if it is to see a trend reversal. To see a reversal, the stock will need to start making higher lows for a couple of weeks to show some strength.

Bullish traders are looking to see some higher lows and for the stock to continue to push higher on the RSI. Bearish traders have been in control of the stock for the past 6 months and are looking to see the RSI fall back below the 50 level for bears to confirm they are still in control of the stock.