Workhorse Stock Needs To Find A Bounce Or It Could Be Doomed

Workhorse Group Inc. WKHS shares gapped down at Monday's market open after the company announced second-quarter financial results.

The company reported a loss per diluted share of 35 cents, missing the estimates by four cents. Revenue came in at $1.2 million, missing analysts' expectations of $5.4 million.

Workhorse Group was up 1.6% to $10.26 at last check.

See Also: Workhorse Group Q2 Sales Surge On Higher Truck Volume; Unloads Majority Stake In Lordstown

Workhorse Group Daily Chart Analysis

  • The stock looks as though it may have broken below the higher low trendline, possibly meaning the stock is changing trends.
  • The stock trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
  • Each of these moving averages may hold as an area of resistance.
  • The $18 price level has been able to hold as resistance multiple times in the past and may continue to hold. The higher low trendline has always held as support, but looked to have cracked below the trendline.
  • The Relative Strength Index (RSI) has been slowly falling the past couple of weeks and now sits at 36 on the indicator. This means there have been more sellers than buyers in recent weeks. If the RSI drops below 30, the stock may be considered oversold.

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What’s Next For Workhorse Group?

Bullish traders are looking to see the stock bounce back higher and trade above the higher low trendline once again. If the stock can cross back above this trendline, bulls would then like to see a break of resistance.

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