WKHSWorkhorse has had some quite bad news in the last couple of days, including the loss of a $6 billion vehicle contract, offered by UPS to one of WKHS competitors. What could have been a massive push to the company's vehicle orders is now gone. Well almost, because Workhorse management want to meet with UPS to discuss the matter. Though I would be very surprised that changes anything to the outcome of the contract awarding. From TA perspective, buying a stock that has lost half of its value within a few days is tempting, but not always a good idea. I see it forming a bearish flag before continuing the dip, which could lead the stock below $10. The RSI is also showing a big weakness.
BUT, don't get me wrong, I don't recommend to short the stock as the risk-reward ratio is not great, but I prefer waiting for the bottom to buy, then ride the stock back up.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.