Cat Channel trade here.
Cat is sensitive to DJI and DJT.
Short target is 265.
I like the March 28th 280p.
Stop loss 320
CAT1 trade ideas
Longer Term Tops Can End With a Big Red Reversal CandleAfter a protracted move up, many times the top is formed on a big intra-day price reversal. I call these "big red candlesticks". The key is to short these stocks on the break of bearish consolidation formations after the first sell-off.
The industrial sector is in demand. Stock Idea 06/02/2024Heavy equipment manufacturer Caterpillar Inc. reported adjusted earnings per share of 5.23 USD for Q4 2023. The company's revenue amounted to 17.07 billion USD, with sales particularly robust in North America. Stocks of industrial sector companies like Caterpillar are now in demand. Following such a strong report, Caterpillar shares updated their all-time highs.
So, today, we suggest looking at the Caterpillar Inc. (NYSE: CAT) stock chart.
On the D1 timeframe, support has developed at 299.93, but resistance still needs to be formed. There is a high probability of a corrective decline in quotes to the 305.73 level, which previously served as resistance.
On the H1 timeframe, a rebound from the 305.74 level could set a short-term target for a price increase at 334.00, while in the medium term, it could hover around 350.00.
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Caterpillar Roars Ahead with Strong Profit Surge
Caterpillar Inc., ( NYSE:CAT ) has emerged as a powerhouse, reporting a remarkable double-digit increase in operating profit that surpassed Wall Street expectations. The surge is attributed to robust demand for mining equipment and large construction machinery, fueled by a rebound in the U.S. residential real estate market. This article delves into the factors contributing to Caterpillar's ( NYSE:CAT ) stellar performance and examines the company's strategic positioning in the evolving economic landscape.
Robust Demand Driving Profits:
Caterpillar's latest financial report paints a picture of resilience and growth, as the company capitalizes on a surge in demand for its products. The mining equipment segment, in particular, has thrived, supported by sustained commercial client expenditure and a notable reduction in dealer inventories – a promising sign of resilience in the face of economic uncertainties. The company's profit margins have received a substantial boost from a $28.1 billion order backlog for construction equipment and continued demand from diverse sectors, including oil and gas, power generation, rail, and defense.
Market Expansion and Biden's Infrastructure Push:
One of the key drivers behind Caterpillar's success is the $1 trillion infrastructure law championed by President Joe Biden. The law has provided a substantial tailwind to the company, with spending on roads, bridges, and other transportation infrastructure remaining robust. As evidenced by an 11% year-on-year increase in retail sales in North America, Caterpillar is riding the wave of a revitalized U.S. residential real estate market. The company's strategic positioning in the energy and transportation segment has led to a remarkable 21% increase in margins compared to the previous year.
Global Challenges and Regional Variations:
While Caterpillar ( NYSE:CAT ) continues to shine in North America, challenges persist in the Asia Pacific region. Commercial purchases in this region have dipped by 5%, primarily due to headwinds in China's troubled property market. Despite these challenges, Caterpillar ( NYSE:CAT ) remains a global player with a diversified portfolio, demonstrating resilience even in the face of regional variations.
Financial Resilience and Effective Management:
Caterpillar's ( NYSE:CAT ) success story extends beyond market demand. The company's earnings have been shielded by effective cost controls and strategic price hikes, effectively fending off inflationary pressures. Operating profit margins have surged from 10.1% to an impressive 18.4% in the fourth quarter, showcasing Caterpillar's ( NYSE:CAT ) ability to navigate economic challenges with a deft hand.
Technical Outlook and Investor Sentiment:
Caterpillar maintains a rising trend channel in the long term. The lack of resistance in the price chart suggests further potential for growth, with an approximate support level at $296. The Relative Strength Index (RSI) above 70 indicates strong positive momentum in the short term, signaling investor optimism and a potential continuation of the upward trajectory.
Conclusion:
Caterpillar Inc., ( NYSE:CAT ) emerges as a beacon of success in the heavy machinery and construction equipment sector, reporting robust profits, expanding market share, and navigating global challenges with strategic finesse. As the company continues to capitalize on infrastructure investments and resilient demand, investors are keeping a close eye on Caterpillar's ( NYSE:CAT ) trajectory, eager to ride the wave of growth in the heavy equipment industry. With a compelling mix of financial resilience, global diversification, and strategic management, Caterpillar ( NYSE:CAT ) looks poised for sustained success in the ever-evolving economic landscape.
CAT, BUT NOT THE MEOW KIND, MORE THE PLANET KILLIN' KIND. At some point climate might matter with this stock, idk.
Are they doing EV?
I haven't done much fundamental research.
Trends marked. All support. All end up taking the price in a bearish direction.
Meaning we may have seen the top or will be seeing top on earnings.
There is a potential scenario where it breaks out on the underside of a trend and move to 400, but it's the least likely of the possibilities.
More likely, we break down into that 250 range and maybe even 150.
everything is pretty clearly marked.
As trends break, they will likely become a rejection trend.
Sell targets in blue
buy targets in red
Stocks at New All-Time Highs Ahead of Earnings: CATThis Dow component attempted a new all-time high and failed. However, it has ample support from the prior sideways trend after the previous all-time high. NYSE:CAT has been over-speculated as it moved out of its bottom low.
The company reports end of January. Watching to see how the stock performs in the next week or so should indicate whether it will be stuck range bound for another couple of quarters or if it will have the fundamentals to support a new high. For now, it has more of the appearance of a range bound sideways pattern developing.
Caterpillar Inc. did well during the years of huge real estate and city development in China. Unfortunately, the great industrial revolution of China is long gone, their population in decline due to fewer births and more deaths reducing their billions. Their consumer-based economy has slammed into Market Saturation as their population continues to age at a faster pace than any nation on earth. CAT needs to find another source for its machinery.
Potential Reversal and Bullish Momentum Ahead $CATNYSE:CAT has caught attention during a random TradingView screening, displaying indications of a trend reversal after initiating an upward movement on December 4. The critical support level stands at $283.29. Should the stock successfully breach the resistance at $299.20, there's a prospect for a sustained bullish trend.
A noteworthy factor is the upcoming earnings report in 26 days, which may influence the stock's performance. Traders should monitor closely, focusing on the breakout above $299.20 as a potential signal for further upward momentum.g its trend to continue an upward movement that started on December 4. The support level is around $283.29, and if the stock breaks past the resistance at $299.20, it could potentially continue its bullish trend. It's worth noting that earnings are coming up in days, which could impact the stock's performance. Keep an eye on these levels and watch for the breakout beyond $299.20 for potential upward momentum.
CAT Possible PullbackIf resistence holds at the top of this ascending channel CAT could see a nice pull back towards support at the bottom of the channel around $265
CAT is bouncing from Trend Channel Support line?I think CAT has formed a measured move into a Trend Channel and would likely continue grinding higher until price reaches the upper bound of the trend channel.
A new wave up beginning in CAT World's largest manufacturer of construction equipment - Caterpillar(CAT), is all set to make a leap upwards of 30+% in the first half of 2024.
The stock of this company has been constantly making new ATH's and displays neat waves everywhere.
The move being discussed and anticipated shall be 1-2-i-ii-iii, Meaning the wave iii of 3.(you can imagine it as a smaller third wave inside of a bigger third wave.
The projected target zone for the anticipated wave is placed at 325-350$ 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 AVWAP Bounce Idea?Caterpillar Inc. (CAT) - Revised Trade Strategy
Trade Setup: Anchored VWAP (AVWAP) Reversal Play
Rationale:
Post-earnings, Day 1 concluded with a bearish spinning top despite substantial volume, indicating indecision yet CAT’s price retained above the critical support level of $225. My initial bias was towards shorting on a potential breakdown below this support. However, the subsequent formation of a highly bullish candle that closed above the high of the previous earnings-related candle has shifted my stance towards a bullish outlook.
Execution Plan:
Monitor the 15-minute chart for a retracement to the AVWAP.
The stock must engage with the AVWAP to confirm its relevance as a dynamic support level.
Absent a touch of the AVWAP, the entry setup is invalidated, and no position will be taken.
A confirmed test of the AVWAP followed by a close above it will signify a shift in momentum to the buyers.
Upon this confirmation, a Limit Stop order will be placed just above a defined intraday resistance level. Concurrently, a Stop Loss will be established beneath an intraday pivot point, which also lies below the AVWAP, to mitigate risk.
Profit Targets:
The initial target is set at $233.72. Upon breaching this level, the next objective will be $240.00.
Half of the position will be exited at a profit level equivalent to 1.5 times the risk assumed from the entry point.
Risk Adjustments:
Continuous evaluation of the trade will occur, and further updates will be disseminated. This strategy, while more nuanced to articulate, is predicated on clear technical confirmations, making it more straightforward to execute in practice than to describe.
Caterpillar Inc (CAT) Reports 12% Increase in Q3 2023 SalesCaterpillar Inc (NYSE:CAT) reports Q3 2023 sales and revenues of $16.8 billion, a 12% increase compared to Q3 2022.
Profit per share for Q3 2023 stands at $5.45, a significant increase from $3.87 in Q3 2022.
The company returned $1.0 billion to shareholders through dividends and share repurchases in Q3 2023.
Operating profit margin for Q3 2023 was 20.5%, compared to 16.2% in Q3 2022.
On Tuesday, October 31, 2023, Caterpillar Inc (NYSE:CAT) released its third-quarter earnings report for 2023. The company reported a 12% increase in sales and revenues, which stood at $16.8 billion, compared to $15.0 billion in the third quarter of 2022. This increase was primarily due to favorable price realization and higher sales volume.
Financial Highlights
The company's profit per share for the third quarter of 2023 was $5.45, compared to $3.87 in the third quarter of 2022. The adjusted profit per share for Q3 2023 was $5.52, compared to $3.95 in Q3 2022. The company also returned $1.0 billion to shareholders through dividends and share repurchases in the quarter.
Operating profit margin for the third quarter of 2023 was 20.5%, compared to 16.2% in the third quarter of 2022. The adjusted operating profit margin for Q3 2023 was 20.8%, compared to 16.5% in Q3 2022.
Performance Analysis
For the nine months ended September 30, 2023, the company's enterprise operating cash flow was $8.9 billion. The company ended the third quarter with $6.5 billion of enterprise cash. In the quarter, the company paid dividends of $0.7 billion and repurchased $0.4 billion of Caterpillar common stock.
Caterpillar Inc (NYSE:CAT) continues to focus on supporting its customers' success and executing its strategy for long-term profitable growth.
Price Momentum
CAT is trading near the bottom of its 52-week range and below its 200-day simple moving average. Investors have been pushing the share price lower, and the stock still appears to have downward momentum which will find a support level and surged prior to 12% Increase in sales we should expect a surged in the stock's value.
Is not a bad idea Market has punished unfairly this stock after earnings. It way overreacted. This is good company and earnings weren't bad at all. It will go up very soon. I bought some calls (you can just buy the stock and hold it forever is that good). Expr Nov 10 strike 230. Careful with the 238 resistance, you may want to close almost all your calls on that level.
Window ClosedYesterday we had opened with a gap up. This window has been closed today what opens the way up again. Mind that we are holding above the MA that serves as a support here.
Long term short CAT to $143I have absolutely nailed this stock in the past (with my dowsing)... Like the lows at $162 wayyy back when. I lost track of it though & was of course disappointed once I saw the rally. I didn't know what I had!
Now though, I have today's date as a time to check up on CAT & isn't it interesting it's right near it's highs?! (I start salivating a bit) Dates in my work are often reversals and I did have a date at those lows at $162. I actually, had price too.
Today's date was given on 2 occasions earlier this summer when I must've check in CAT, but I haven't been following it lately.
What is the dowsing suggesting? CAT is at "very long term resistance" and I asked what price it goes to, which gave me $141, and a percent down of 50%, which conveniently lands it at $143!
I'm expecting this to occur over the next 14 months. I may have missed the rally, but I shall not miss this. Be aware as the market pops later this week CAT may get to $288 +/-, & there is a near term date of 9/12. In the big picture I don't think it matters. Also, be aware it may have a choppy range for a while too.
Descending TriamgleTop line is resistance and the bottom line is support.
Price is on support. Once this support is broken, it becomes resistance.
Top line slopes down and bottom line is virtually flat forming a Descending Triangle.
There is a rising wedge below price that is bearish if price breaks the bottom line of the wedge.
No recommendation.
Neutral until bottom line is cleanly broken.
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
CAT - another leg down likelyShould the red bar and wedge breakdown, there will be a lot of longs that got in recently on the large uptrending bar that started the wedge looking to get out (see Vol). Momentum indicator also showing a new bearish phase has started.
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.
📈📊 #ChartPattern Alert! 📈📊📈📊 #ChartPattern Alert! 📈📊
📈 Ascending Channel 📈
📈 What is an Ascending Channel? The Ascending Channel is a bullish chart pattern formed by two parallel trendlines containing the price action within a rising channel. The lower trendline connects higher lows, while the upper trendline joins higher highs.
📈 How to Identify:
Draw a trendline connecting at least two higher lows (ascending support) and another trendline connecting at least two higher highs (ascending resistance).
📈 What it Signals: The Ascending Channel suggests a healthy uptrend, with buyers stepping in at higher lows, showing increasing demand. The price tends to move between these parallel lines, providing potential trading opportunities.
📈 Trade Strategy:
Consider buying near the lower trendline support and selling near the upper trendline resistance.
Implement a stop-loss to manage risk in case of a breakdown below the channel.
Remember to combine the Ascending Channel pattern with other technical indicators and conduct thorough research before making any trading decisions. Happy charting and trading! 📈💹
Has CAT Run out of Lives?Caterpillar has been leading a rally in industrial stocks, but now some traders may expect a pullback.
Notice the gap to new record levels on August 1 after earnings beat estimates. CAT pushed to another high the following session but failed to hold and closed in the red. That kind of “shooting star” candlestick is a potential reversal pattern.
Second, the surge pushed Wilder’s Relative Strength Index (RSI) far into overbought territory. It’s now retreating from that condition.
Third, a narrowing price range since the rally produced a triangle. Prices broke the bottom of that formation yesterday. They also closed below their 8-day exponential moving average (EMA) for the first time this month.
Traders looking to the downside may target the $270 area or lower, which corresponds to the recent gap.
The macro backdrop could also worry some investors, given China’s economic weakness lately.
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