CAT trade ideas
Falling Wedge- Bullish - UpdateNice falling wedge on CAT here along with some slight bullish divergence on the RSI. Will be watching CAT closely here for a breakout from this wedge (Broader Market Conditions Permitting). Definitely worth noting that CAT is a relatively slow mover so likely will be a longer-term play. Bullish- just some support and resistance levels and some RSI-based supply and demand zones to keep an eye on in the meantime. -Previous Charts are attached below-
- Falling Wedge
- EMA's converging & starting to curl upwards
- Bollinger Bands starting to squeeze (Not Pictured)
- Slight Bullish Divergence on the RSI (Not Pictured)
- MACD Golden Cross
- Buyer volume picking up to seller volume
PT1- $207.79
PT2- $208.61
PT3- $210.79
PT4- $211.34
--Previously Charted--
Short CAT Cat reached the 3.618 TBFE back in June and then subsequently fell below the ascending channel in August. With no BBB legislation being passed and most industrial and grocery stocks trading similarly to tech stocks, it is fair to assume that companies like CAT, HD, LOW, and COST will each have great shorting opportunities in the next few weeks. As CAT has settled within a wedge, the likelihood that this stock falls further to the downside is good. First target is 184 and second target is 166.
Not financial advice
Happy New Year
Buy $CAT - NRPicks 17 SetCaterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives worldwide. Its construction segment offers asphalt pavers, compactors and utility vehicles, among others.
Revenue TTM 45.8B
Net Income TTM 4.3B
EBITDA TTM 8.6B
EBITDA Margin TTM 18.9%
P/S 2.43
Dividend yield 2.1%
$CAT is moving! Macro analysis + technical with boxes.Hi everyone,
On Saturday US government finally agreed to pass a huge $1 trillion infrastructure bill.
What does that mean?
Utilities, communication, transport and industrial companies will receive subsidiaries for expansion.
So why NYSE:CAT ?
The biggest construction equipment manufacturer in the world. They will benefit indirectly as companies buy/lease their machines/services for infrastructure construction.
Now the chart.
NYSE:CAT is already up almost 5% in premarket after the Saturday news.
It has broken out of the box at 208 and now gapped up deirectly to the next minor resistence level at 216 .
I expect the stock to temporarily trade in a small box before the surge to 223 level.
Long NYSE:CAT :)
Let me know what you think.
What other stocks are going up on this news in your opinion?
Trade wisely and good luck!
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Disclaimer!!!
This is not financial advise.
CAT - 220/225 then going shortWith the gap higher this morning I had to re-evaluate CAT. It is trading within this megaphone pattern and on the smaller timeframes it should be looking to complete a minor 5 wave sequence into 220/225. From here I will be looking to get short as I believe it has another wave lower towards 180 range.
CAT - Bearish provides a good short setup here being rejected at the top of the bearish channel twice signaling a double top. Looking for a break lower towards 196/197 area. Below orange line would likely confirm a C wave down inside the ABC corrective wave towards 177/180. Supply zone at 209.50/210 with 211.51 being the 1.618 extension level if this crawls a little higher early in the week.
Cat is to the moon this week Biden just passed the $1T infrastructure bill which means that this should show a lot of momentum next week with a continuation of the daily breakout of the falling wedge. My bet is that its going to blast through all previous resistance breaking all time highs. GET IN CALLS. LETS EAT
Caterpillar Breaks out of wedgeThe breakout distance usually follows the width of the intial wedge entry which was 19%.
First target is 217 which at that point there's usually a pullback with this pattern (See my IBM link).
Second and final target 233.84 which represents a full pattern play out. Momentum could carry this further in ATH highs
All targets are Fibonacci resistance using June 4th high and Oct 13th low
10/17/21 CATCaterpillar, Inc. ( NYSE:CAT )
Sector: Producer Manufacturing (Trucks/Construction/Farm Machinery)
Current Price: $199.02
Breakout price trigger: $203.00
Buy Zone (Top/Bottom Range): $196.00-$187.00
Price Target: $223.80-$224.50 (1st) $247.20-$248.00 (2nd)
Estimated Duration to Target: 48-51d (1st), 147-155d (2nd)
Contract of Interest: $CAT 12/17/21 210c, $CAT 3/18/22 220c
Trade price as of publish date: $4.10/cnt , $5.60/cnt