Could Workhorse Group Stock Be Making A Reversal?

Workhorse Group Inc (NASDAQ: WKHS) shares are trading higher Tuesday after the company announced it would be partnering with Amerit Fleet Solutions. Amerit is going to provide warranty and repair programs to Workhorse customers all across the U.S.

Workhorse was up 0.93% at $9.81 at last check Tuesday afternoon.

Workhorse Daily Chart Analysis

• The stock looks to have formed a higher low and is potentially beginning to form into what technical traders call an ascending triangle pattern.
• The $18 price level is an area where the stock has struggled to cross above in the past. The higher low trendline has begun to form and is a place the stock may find support
• 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 higher the past few weeks and sits at 44. This shows that the stock has seen more buyers the past few days, although overall the stock still has more selling pressure.

What’s Next For Workhorse?

Bullish traders are looking to see the stock continue to hold above the higher low trendline and work its way toward resistance. Eventually, bulls would like to see the resistance level get broken and for the stock to push higher.

Bears are looking for the stock to fall below the higher low trendline and begin to break the uptrend. Bears would also like to see the RSI begin to fall further and break into the oversold area.

Photo: Courtesy Workhorse