Workhorse Group Stock Flies As Retail Traders Try To Squeeze Shorts

Workhorse Group Inc. WKHS shares gapped higher Thursday after retail traders flooded into the stock trying to take advantage of the high short interest. The short float percentage in the stock is showing to be above 42%.

Workhorse Group was up 26.6% at $14.58 at last check. Below is a technical look at the stock.

Workhorse Group Daily Chart Analysis:

  • Shares have been falling the past few months in a downward channel that may also be called a falling wedge.
  • The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
  • The 50-day moving average may hold as an area of support, while the 200-day moving average is a place where the stock may find resistance.

Key Levels To Watch:

  • Workhorse Group shares gapped higher Thursday, potentially breaking out of the falling wedge pattern.
  • The falling wedge pattern is considered a bullish reversal pattern that happens when the price is condensed and squeezed to a point while trading in a downwards trend.
  • A break above pattern resistance could let the stock move higher, while a break below pattern support may hint that the stock may see a lower push.

What’s Next?

Bullish technical traders would like to see consolidation for a time before the stock may see another move. Bulls want to see the stock hold the gains it made as it consolidates.

Bearish technical traders would like to see the stock fall to the area inside of the wedge. If the pattern support were to break, the stock could see a further downward push.

Posted In: Long IdeasShort IdeasTechnicalsSmall CapTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.