Could Workhorse Group Be The Next Stock To Squeeze Out The Bears?

Workhorse Group Inc. (NASDAQ:WKHS) shares moved higher Thursday after the company appointed Richard F. Dauch as the new CEO.

The stock is also a short squeeze candidate as the stock has a short percentage of almost 36%.

Workhorse was up 3.89% at $11.74 at last check Thursday.

Workhorse Group Daily Chart Analysis

• Shares look to be forming into what technical traders call an ascending triangle pattern after forming higher lows.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The $18 level has held as resistance a few times in the past and the higher low trendline is building to this level. If the price can follow, it may see a breakout.
• The Relative Strength Index (RSI) has been curling higher the past couple of weeks and now sits at 46. The movement shows buyers have been entering into the stock.

What’s Next For Workhorse Group?

Bullish traders are looking to see the stock hold above the higher low trendline and continue to form higher lows. Bulls would eventually like to see the stock break out of the pattern and hold its gains.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. This could let the stock see a further bearish push.