Workhorse Group Inc. (NASDAQ:WKHS) stock fell Monday in the wake of the company's first-quarter earnings report.
Workhorse Group reported revenue that was less than half of what was expected by the Street
The net loss was $120.5 million vs. net income of $4.8 million in the year-ago-period. Sales rose from $84,300 to $521,060, but were still below the estimate of $2.3 million.
Workhorse was down 15.4% at $8.16 at last check.
Workhorse Group Daily Chart Analysis
- The stock has been falling in recent months into what technical traders call a falling wedge pattern.
- The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
- Both of these moving averages may hold as resistance in the future.
Key Workhorse Levels To Watch
- The stock has been trading within the falling wedge pattern and looks to have broken the support of the pattern.
- The falling wedge pattern is considered to be a bullish reversal pattern, but if the stock breaks out to the downside it could still see a strong bearish move.
- The stock looks to be attempting to make a downward bearish move.
What’s Next For Workhorse?
Bullish technical traders would like to see the stock bounce and start making higher lows again. This could signal that the trend is changing again.
Bearish technical traders would like to see the stock make a strong bearish move and keep pushing down. If the company saw more poor results in earnings in the future, the stock price may see more downward moves.
Photo courtesy of Workhorse.