Bearish flag on WKHS heading below $10
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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