Caterpillar (CAT): Construction Strength Amid Industrial SlumpCharting Caterpillar can be challenging, given the complexity of its price structure, but it’s fascinating to see how well it respects Elliott wave theory and trend channels. Despite the difficulties, the adherence to these principles makes the analysis quite promising.
The construction sector for Caterpillar remains robust, while the true growth catalyst is expected from a recovery in the mining industry, driven by demand from China and other regions. However, it’s not all positive: industrial activity in the U.S. has been sluggish, with the Institute for Supply Management Purchasing Managers' Index falling below 50 in 21 of the last 22 months—marking one of the worst streaks on record. This industrial downturn certainly adds pressure.
On a higher time frame, there’s not much new to add. However, we are looking for Caterpillar to move higher to complete wave (3). As shown in the zoomed-in chart (the chart in the left frame), we can observe how accurately the price is moving within the trendline. The "best-case" scenario for us would involve a push above the channel, followed by a sell-off. If this happens, it will provide a clearer indication that a larger correction—wave (4)—is imminent.
Caterpillar
Caterpillar 344 After earnings ? Caterpillar Inc. (NYSE: CAT) has once again demonstrated its robust market presence, with its stock price soaring past $344 following the release of its latest earnings report. The industrial giant reported impressive financial results for Q1 2024, with total revenue reaching $15.8 billion and a basic earnings per share (EPS) of $5.601. This performance not only exceeded analysts’ expectations but also highlighted Caterpillar’s resilience and strategic growth in a challenging economic environment.
The company’s strong earnings were driven by increased demand across its construction, resource, and energy & transportation segments. Caterpillar’s ability to navigate supply chain disruptions and leverage its global footprint has been pivotal in achieving these results. The market responded positively, pushing the stock to new heights and reinforcing investor confidence in the company’s long-term prospects.
As Caterpillar continues to innovate and expand its product offerings, the future looks promising for this industry leader. Investors and market watchers will be keenly observing how Caterpillar capitalizes on its current momentum to drive further growth and shareholder value.
Caterpillar: Digging DeeperOur forecast for Caterpillar suggests that the green wave is currently being developed. We reckon with further price drops in the short term before the beige wave IV can conclude. The pending low should then initiate a trend reversal, which should enable an upward move above $402.16. However, in the context of our 35% probable alternative scenario, the trend would reverse earlier. In this case, the beige wave alt.III would form a new high above $402.16.
Caterpillar (CAT): Journey to New HeightsCaterpillar (CAT): NYSE:CAT
For Caterpillar, we are currently dealing with Wave (3), which is soon approaching its maximum at the 461.8% level of $385. Following this, we expect to see Wave (4) and then Wave (5), marking the end of our largest cycle, which concludes in Wave I. This sets the stage for building larger positions over the long term, although this will take considerable time, so our focus remains on the nearer term for now.
On the 2-day chart, it's apparent that we are approaching a significant resistance. The 461.8% level at $385 coincides with the 100% extensions for the maximum of a potential Wave 5 at 100%. Therefore, we anticipate encountering substantial selling pressure on Caterpillar, where we intend to find our entries for Wave (4). This process will take time, as there is still some room to move upwards, and we won't place aggressive entries just yet. We might turn before reaching this exact level, as it's not always necessary to hit these levels precisely.
Paving the Future of Growth and Innovation in Heavy MachineryNYSE:CAT Has broken a previous resistance at $285 and looking to make new all time highs. From here we are going into uncharted territories but targeting $345 #Bullish
NYSE:CAT will continue to be a strong performer as it is well aligned with key global trends favoring infrastructure development and economic recovery. With governments worldwide allocating substantial budgets to construction and mining projects, Caterpillar stands to gain significantly as a leading provider of heavy machinery. As the global economy rebounds from the COVID-19 pandemic, the demand for Caterpillar's diverse range of construction and mining equipment is poised to rise.
Caterpillar's strong position in the mining industry boom, coupled with its history of returning value to shareholders through dividends and buybacks, makes it an attractive investment for those seeking exposure to the industrial and construction sectors.
A new wave up beginning in CAT World's largest manufacturer of construction equipment - Caterpillar(CAT), is all set to make a leap upwards of 30+% in the first half of 2024.
The stock of this company has been constantly making new ATH's and displays neat waves everywhere.
The move being discussed and anticipated shall be 1-2-i-ii-iii, Meaning the wave iii of 3.(you can imagine it as a smaller third wave inside of a bigger third wave.
The projected target zone for the anticipated wave is placed at 325-350$ zone.
A look at the support/resistance zones also shows the stock attempting to reverse off a major S/R zone.
The construction and manufacturing sectors have slowing started picking up and the US economy is better off than it was in 2022 and 2023. It is therefore expected of these sectors to do better in 2024 than they did in 2023 and increase their operations and output.
This in turn should point towards a good business year for CAT since manufacturing, construction and mining sectors form its major customer base.
Note*- This chart is based on personal observations/opinions. Please be cautious while making any financial decisions.
CAT : Unlocking Upside Potential with a $290 TargetCaterpillar Inc (CAT) has recently demonstrated significant upside potential according to the latest technical analysis. Let's delve into key points supporting this positive outlook:
Recent Developments:
On October 31, 2023, CAT's stock price touched a critical support area at $228.37, marking its lowest level since June 2023. The significance of this level is reinforced by the presence of a long-term upward trendline dating back to March 2021. This underscores strong demand at this level, signaling the continuation of the upward trend.
Positive Reversal:
Following the support touch, CAT shares experienced a positive reversal by successfully breaking through the previous resistance level at $244.24 on November 3, 2023. This indicates an increased buying pressure, suggesting that CAT has the potential to continue its ascent to higher levels.
Target Price Set:
The proposed target price is around $290, reflecting the highest level reached in August 2023. This target selection is based on psychological aspects and the Highest level of all time
Momentum Indicator Support:
Two key momentum indicators, MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index), provide positive signals:
MACD is above its signal line and the zero level, indicating that upward momentum is increasing, supporting the continuity of the uptrend.
RSI has moved above the 50 level and is approaching 70, suggesting that CAT may be in an overbought condition. This indicates a higher number of buyers than sellers, supporting the prediction of price increases.
Conclusion:
Based on this in-depth technical analysis, Caterpillar Inc (CAT) shows robust potential for upside movement. However, as with any investment decision, it is advisable to conduct further research and consider risk factors before making decisions. Stay informed about the latest news that may impact the overall stock market.
CAT Caterpillar Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CAT Caterpillar prior to the earnings report this week,
I would consider purchasing the 237.5usd strike price Puts with
an expiration date of 2023-11-3,
for a premium of approximately $6.20.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
CAT, Formed EXPLOSIVE BULL-FLAG-BREAKOUT, Extension Prevails!Hello There!
Welcome to my new analysis about CAT Stock Price Action Analysis on the Weekly Timeframe Perspectives. The CAT Price Action recently showed up with a highly important dynamic and in this case a major formation has been formed that caught my attention. The CAT earnings through the recent quarters look pretty damn solid and the equity-to-debt ratio held stable through the recent quarters indicating a substantially fundamental base from where CAT has a strong potential to be backed from a financial market investors open-interest perspective. While other sector stocks showed up with pullbacks CAT moved on to form new highs. Such dynamics are pointing to a interesting stock price-action dynamic that should be considered in the schedule.
When looking at my chart now I have marked there this huge bull-flag-formation which CAT has built during the last times. Within this formation CAT moved on to form a new higher high exceeding the previous one into an all time high as well as several higher lows that supported the bull-flag-formation to be completed with the breakout above the upper boundary. CAT also bounced several times within the 65-EMA in blue and the 25-SMA in green building substantial support-structures in combination with the main ascending-trend-line. The wave-count within the bull-flag-formation has been completed appropriately and from there on the final breakout above the upper-boundary has been validated by the bullish volume.
The major formation that CAT recently completed here has now activated the upper target-zones as marked in the chart together with the major wave-C to emerge out of the breakout-origin. The fact that the waves A and B have already completed give the breakout and wave-C extension a fundamental base for the expansion to show up within the next times. The setup and indications that CAT provided here are delicate for an main positioning into the bullish direction and it has to be remarked that not every stock is showing such concrete factors into the appropriate direction this is why CAT is a main considerable stock-pick that we will keep following on the watchlist.
Within the near terms a final setup-determination above the upper-boundary of the formation as seen in my chart is likely and from there on the wave-C expansion-wave will determine to reach out the upper-target-zones. Once the zones have been reached further assumptions need to be made. Especially a continued healthy equity management of the company can support the bullish case massively.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
Caterpillar: Metamorphosis 🐛🦋The Caterpillar share price has been experiencing ups and downs lately and has not quite been able to approach the resistance at $293.88. However, we anticipate that this breakthrough is imminent. With the low placed at the end of August, the price is currently in the turquoise wave 5, which should reach the green target zone between $325.21 and 358.93 and represents the end of the superior white wave (I). A fall below the support at $250.89 would put a spanner in the works. Then, our 36% likely alternative would activate, and the price would move further down.
CAT Caterpillar Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CAT Caterpillar prior to the earnings report this week,
I would consider purchasing the 260usd strike price Puts with
an expiration date of 2023-8-4,
for a premium of approximately $5.40.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Beneficiaries of US-CHINA trade agreementwww.scmp.com
When US gets ready its stockpile of soybeans to export to China after the agreement is signed, they will need big tractors and agricultural equipment to assist in its export.
Caterpillar , the household name of US tractors would be one of the beneficiary of this US-China trade deal.
Is it a coincidence that the bearish trend line of this company has just ended recently on 29 Oct and prices are now slightly moving sideway before picking up steam and effort to charge higher ?
I would be initiating a buy position at 141.05 with a profit target of 172.
CAT idea long wedge vs breakdownI just posted a CAT long idea. (check my profile for context on that)
I mentioned a breakdown but didn't draw it out so decided to make another post (this one).
I'm looking out for both options.
CAT has strong fundamentals and i can't imagine it getting absolutely wrecked, even in worsening economic conditions.
Caterpillar: At site 🚧Caterpillar is at site, working on wave (2) in magenta, which should lead further downwards into the magenta-colored zone between $198.40 and $171.37. From there, the share should turn upwards again, climbing above the resistance at $266.04. However, there is a 34% chance that Caterpillar could slip through the magenta-colored zone and drop below the support at $160.02. In that case, we would expect the share to develop a new low in the form of wave alt.2 in green first before heading upwards again.
CAT Swing Long Reversal UPDATECAT is now bottoming for a SALE just in time for seasonal construction and agricultural upticks.
The long view is a long uptrend that started in September and ended with a lousy earnings report in
early February. The beatdown is now ending perhaps for fundamental reasons including CAT
has cash and down not need high-interest rate costs.
See the chart for the analysis. See also the previous idea. Check DE.
I see this as an intermediate-term swing long or investment or a good choice for a long expiration
call contract of options.