WKHS stock- This is not Buy The Dip opportunity – Idaho Reporter

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WKHS stock- This is not Buy The Dip opportunity

Is this the beginning of the end for Workhorse (NASDAQ:WKHS) stock?

If you are in it for a short term profit, yes. If you are in WKHS for a long haul you will probably see better days. Probably.

Anyone who wants to evaluate the dynamics of a WKHS share price can fall back on the prominent Relative Strength Index, the RSI. According to this, the ratio of upward and downward movements on a scale from 0 to 100 for a period of 7 days,or for 25 days as RSI25. The Workhorse RSI, with a score of 38.8, is the basis for a “hold” rating. The RSI25 amounts to 38.84, which results in a classification as “Hold” for 25 days. This overall picture leads to a “Hold” rating.

If you bought Workhorse stock back in teens this is a great news for you as you are still in green, but if you fell for USPS deal story and went all in above $20 this is not the best news

I see WKHS going to $18.00 before it tries to bounce back.

Why? Because many investors aren’t sticking around to find out who will get that deal.

The company’s restructuring efforts will probably pay off, but not in the months to come, because capacity is tight and will remain so for the rest of the year. The company lacked big orders in the past, but it has demonstrated over the past two quarters that it is serious about improving capacity going forward.

Even though WKHS had a nice drop Tuesday, it’s still expensive compared to June price, when USPS contract story started unfolding. We are now at 300% compared to June and this is all thanks to that contract that WKHS probably won’t get.

In the end I firmly believe that WKHS stock will regain lost ground on the back of USPS contract once again, which will give you another opportunity for a short term profit. But you need to give it some time, this is not the best time to invest in WKHS.

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