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Caterpillar

Caterpillar technicals point to downside riskCAT reached new annual highs last week but failed to break above an important technical level at $83.90 (50% Fib level in chart). A negative divergence has taken shape in the daily RSI as prices retreat from a trend line resistance tested on 17 August. So long as prices remain below $85.30 (current projected trend line level), we may see CAT correct down towards $80.90 by next week. $77.40/$78.00 is also a possible target if such a correction takes place next month.
NYSE:CATShort
by ABRAK75
Harmonic analysis - Caterpillar probably on its way to 55$I always find it amazing how the media starts talking about crisis when it almost over. Although $CAT is still far from the important buy zone I'll mentioned below, $CAT had to lose almost half of its value for this guy to start paying attention: www.cnbc.com (Jim Cramer realizing the $CAT is in trouble). In fact, the bearish opportunity on $CAT was about a year ago as $CAT created weekly triple top with bearish harmonics - on Sep 20th (2014!) I posted a bearish setup for $CAT with the bearish weekly Bat that completed near 112$ (see the setup posted a year ago - goo.gl) The final target zone of this bearish setup was the strong structure zone near 80$ - 30$ decline from its peak. When $CAT broke below 75$, the bottom of the weekly structure zone, it actually created a very strong bearish signal that suggests that $CAT will not create higher highs any time soon. 80$ Became a major resistance zone right now (weekly zone) that should prevent $CAT from any longer term rally attempt. Still, recommending to sell $CAT now, is irresponsible (Yes Mr. Cramer). $CAT reached a weekly support zone (64-65$) that can create short term pullback, perhaps towards the 80$ zone. Buying $CAT right now is too risky, and If' I'd planned to buy it here, I'd wait for at least some sort of daily reversal pattern or at least a weekly Pinbar pattern. The better opportunity will be if (and I believe ..when) $CAT will decline towards the 55$ zone. The 55$ is a strong weekly structure zone (support) and the completion zone of a bullish Butterfly pattern. 55$ should definitely be marked as potential Buy Zone for those who seek to buy $CAT stock (obviously you need to look for smaller time frames and seek for confirmation signals before jumping in front of this speeding bearish train). So 65$ and 55$ are two potential buy zones (with clear advantage to 55$). Both of these buy zones have the same target zone - 75-80$. 80$ will a major sell zone to monitor over the next weeks/months. If $CAT will rally (Year End Rally), 80$ will be the zone to monitor for possible selling opportunities....but, pay attention also to 88$. A weekly False Break to 88$ isn't something I'd rule out (not likely at this stage but put it in mind). One last thing.. If, the highly unlikely scenario that $CAT will break below 50$ will occur, there's also a bullish Bat completing near 30$ (32$). It really looks highly unlikely but.. hey.. no one thought that $CAT will lose almost half of its value in about a year If you like this analysis, please press the like and follow. You can visit and follow my blog for more analysis and trading ideas (for stocks and Forex) - goo.gl Subscribe to the Weekly Markets Analysis newsletters - goo.gl
NYSE:CAT
by themarketzone
1
CAT classical "h-pattern"This construction mashinery company entered into strong uptrend since December 2013 after it broke up major consoldation resistance in the mid $80ish area. Now stock with the whole sector ($MTW, $TEX, $DD, $JOY) showing relative weaknes vs broad market. I use my 8 and 21 EMA to measure short term sentiment ant to make adjustments if i am positioned. It dropped its 8/21 EMA on 20th of May first time since mid March. And settling for a nice h-set-up which is classical pattern in technical analysis. Break down below $100.72 may attract more active, swing traders and I expect to see some follow through. Stop above previous swing high at $104.50 makes this trade attractive from R/R point of view. Target is $95 previous base support level, 200 EMA. All traders should manage this trade depend on their time-frame and strategy.
NYSE:CATShort
by andrew.berg