Workhorse Cracks Key Trendline: Is It Done For?

Workhorse Group Inc. (NASDAQ:WKHS) shares were trading lower Wednesday after the company announced it would be withdrawing its United States Postal Service bid protest complaint filed in the United States Court of Federal Claims.

Workhorse shares were down 3.43% at $8.16 midday Wednesday. 

Workhorse Daily Chart Analysis

• The stock looks to be breaking below the higher low trendline in what technical traders call an ascending triangle pattern.
• The $18 price level is an area the stock has struggled to cross above in the past. The higher low trendline has been a place of support, but may turn into resistance if it breaks below the line and struggles to cross above it 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) has been moving lower the last few weeks and sits at 32. This shows the stock has seen an increase in the amount of sellers. It is nearing the oversold area that starts at 30, where selling pressure is much greater than buying pressure.

See Also: Workhorse Withdraws USPS Legal Challenge Against Oshkosh: What Investors Should Know

What’s Next For Workhorse?

Bullish traders are looking to see the stock bounce and cross back above the higher low trendline. Bulls would then like to see the stock resume on its way back up the trendline.

Bears are looking to see the stock fail to cross back above the higher low trendline and would like to see the stock continue to fade lower. Bears look to be in control of the stock at this time, and they would like to keep it that way.