CAT1 trade ideas
Nice bear wedge in CAT. Nice bear wedge playing out in CAT. But in this "teflon" market, it's hard to initiate shorts.
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.
(Update): Caterpillar builds new support baseCaterpillar price managed to breach above 61.8% fibonacci level and trying to build support base above it, which assists to push the price for more positive targets, waiting for our main target around 116.94.
More support comes from the EMA50 to protect the positive scenario.
Caterpillar gets a positive motiveOn the 4-hours chart, we witnessed a double bottom formation completed by breaching 99.70 level, this pattern has the ability to push the price to head north targeting the recently recorded top at 116.94, followed by breaching this level to open the way for more gain.
EMA50 supports the bullish wave, while breaking below 97.60 will stop it.
CAT Bullish WeeklyOn a weekly chart CAT is setting up nicely for a breakout move. It is in a tight consolidation range which Bill Williams refers to as the saddle point. I have highlighted the first bullish fractal. Will be setting my buy stop 2 ticks above that high. One could also put in a short entry on the fractal below the alligator. Either way this is a high probability setup.
My stops would be just below the alligator (blue line) for a low risk entry or as Williams says taking your trade in the low rent district LOL. My first target would be 50% retrace from the high of the sell off..
CAT monthly CAT is coiling big time in the monthly a huge move out of the wedge must be in the cards soon
CAT finally out of the bag?? Speculating Long breakoutI initiated Tier 1 size long at $83.50. Might add a bit more depending on the close today. Risk is roughly 1-1.5% (below today's low) and reward should be roughly 6-7% (recent pre-earnings gap high)
*Bullish breakout isnt confirmed yet. I am cheating to the long side.
SHORT TRADE WITH 3.19 REWARDSPossible short trade as price is trapped and doing a rolling pin action between the purple sliding parallel and near the median line.
Caterpillar long-term outlookThis is an outlook based on short covering at an important pivot level.
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CAT: Weekly Long or Short?Price has been compressed in a range for a long time now (i.e. breakout either way should be explosive).
Good risk-reward setup.
