What's going on moon gang, i hope you're having a great day, and i also hope that your portfolio is making new highs like it's no one's business, my name is matt and in this video i will be doing a technical analysis of the fan. Favorite stock workhorse. Knowing what upcoming levels of supply and demand we should be watching for will give us a better chance of capitalizing on opportunity for the remainder of october. Before i jump into the charts, if you haven't already, you can join the moon gang by subscribing to the channel.

My goal is to provide as much value as i can and hit 5 000 subscribers by the end of this year. It would be greatly appreciated if you could help me with that by hitting the subscribe button and turning on your notifications, so you don't miss any of my upcoming videos. I've been learning a lot from all of you, so i would love to know your thoughts and price predictions on workhorse stock. In a comment below, i will be responding to all of you now with that out of the way let's get started.

This is the daily chart for workhorse stock, which trades under the ticker wkhs workhorse is currently at 23.62 cents, which means it has a market cap of almost 2.5 billion dollars and according to yahoo finance, the short interest is 23 percent, which makes the stock a prime Candidate for a short squeeze over the past week, workhorse is down five percent over the past three months, it's up 34 and over the past six months, it's up an incredible 300 percent and from the start of 2020, until now, it's up 676 percent. As you can see from this income statement, you could definitely consider workhorse to be a speculative play because the company is not profitable over the past three years it's been losing roughly 40 million dollars a year. Obviously this could change on a moment's notice, especially if the usps contract goes in favor of workhorse. Let's turn on my previous technical analysis, so we can get a better idea of what's been going on with workhorse from july until september.

The stock was essentially range bound in between 14 and 18. Then, at the end of august it was able to break out above this downward trend line and at the start of september, it reaffirmed this support and continued to run overall. In the month of september, workhorse was up a noteworthy 40 percent. To the dismay of many investors, workhorse hasn't had the best start in the month of october, and this is most likely because of two reasons.

First, is the usps contract? Many investors and analysts were expecting this to be announced by the end of september, but this didn't happen and there isn't a set date in the future. Most people are now expecting to hear the results of this contract by the end of the calendar year and second, the president of the u.s caught the coronavirus, which is obviously not good for the overall market. As things currently stand, workhorse is caught in this bullish wedge. The first support is relatively close by just below 22, and it's also bolstered by this middle trend line and below that there is a lot of demand in the low low 20s and the high 19s.

I recently bought more workhorse stock around 23 dollars because i think there's a good chance that the stock is able to bounce in this region, but if the bull camp doesn't show up and the bears are able to push it below, i will buy even more stock. Around twenty dollars, if workhorse is able to bounce in either of these regions of demand, the first resistance would be this top trend line, which would also mark a breakout. If that happens, then the next line in the sand would be the trend line hit at 28 and above that would set up a test of the all-time high at 31. If you're a workhorse investor, things are looking pretty favorable for you in terms of risk to reward, because the first support would be a decline of 8 and the first resistance would be a gain of 21.

Since this is the daily chart, there's a good chance that these levels will come into play for the remainder of october, but to get a better idea of what might happen in the near future. Let's switch over to the 4-hour chart here we can get a more detailed view of what's been going on with workhorse the stock performed very well in the first three quarters of september. It started off by reaffirming this support at 17 and then it ran directly to a new all-time high at 31. After that, it quickly came down to 20, which established a new higher low, but from there it made a new lower high and form this overall wedge by getting rejected at twenty eight dollars.

As i said before, i did buy more shares of workhorse at twenty three dollars. I may have mistimed this a little bit because there is a chance. The stock falls more, but if this does happen, it will be whatever, because it's extremely difficult to time things perfectly in the stock market. If the bull camp can't hold this line, i will definitely be buying more shares of workhorse around 20, because this is an area of high support and demand.

As things currently stand, i think that this first scenario is more likely because it would be continuing this pattern of higher lows following this middle blue trend line. If workhorse manages to bounce off of either of these regions, the first area i would be paying close attention to would come at 25. Not only is this an important psychological level, but it is previously served as an area of consolidation. It bounced off of it proving it was support, and it was even resistance if you go back far enough.

If workhorse stock can get above this key level of 25 dollars and hold, it would then bring this top trend line into play and if the bull camp can push the stock above that, i would then have my eyes set on this previous resistance and trendline hit At 28.62 and, of course, above that, investors should be paying attention to the all-time high at 31.. For those of you interested as of the most recent close workhorse stock is 31 away from its all-time high in the short term, i'm confident about workhorse bouncing off of either of these regions of support, not only because of this bullish technical structure, but because of what I'm seeing in some technical indicators, most recently workhorse, was able to rally 30 percent when it bounced off of this trend line and the rsi or relative strength index was around 35.. Now the rsi isn't at 35, it's a little bit higher at 40, which is why i'm predicting a small decline down to this region and then a bounce and re-test of 25, which would then set up this top trend lot. Obviously, this doesn't have to happen because nothing in trading is perfect, but this is how i'm currently seeing the market structure for workhorse and more of a medium-term view.

I'm looking for the stock to test the 29 and 31 area by the end of october. As things develop related to workhorse the ev sector and the overall market i'll make sure to keep you updated with levels of support resistance and where i see things headed in general, i'm a big fan of workhorse as a company and i'm very bullish on workhorse stock. The company is well positioned in the rapidly growing ev sector. They are expanding in terms of both staff and vehicle deliveries, and they have an amazing partnership with lordstown motors in the near future.

I would recommend paying attention to the lordstown merger going through workhorses next earnings report in early november and, of course, any announcements related to the usps contract. All these things could swing workhorse stock in one direction or the other. Honestly. I personally believe that workhorse has a very bright future, even if it doesn't win the usps contract.

Now i would argue that there is a high likelihood it will win at least some portion of the usps contract, but if it doesn't, i still wouldn't be bothered. Workhorse has many things going for it, which makes me confident in being a long-term investor. Obviously these are just my personal opinions and i'm not a financial advisor so make sure to do your own research. I would love to know your thoughts on workhorse stock.

In a comment below and also feel free to, post any suggestions or recommendations for what i should cover next, thanks for watching your support is truly appreciated. If you're interested in the charting software, i use there's a link in the description below currently there's a 30-day trial period. That is absolutely free, so you have nothing to lose. I would highly recommend checking it out if you enjoyed this video.

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