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CATERPILLAR INCCATERPILLAR INCCATERPILLAR INC

CATERPILLAR INC

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CAT1 trade ideas

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. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
NYSE:CAT
by TradeStation
1
Bullish Pennant on Caterpillar IncA bullish pennant is a chart pattern that often indicates a continuation of a uptrend after a brief consolidation phase. It is formed when there is a sharp price incline (flagpole) followed by a period of consolidation, represented by converging trendlines that resemble a pennant shape. This pattern suggests that the buying pressure remains strong, and after the consolidation, the uptrend is likely to resume. Entry Point: At the breakout The entry point for a bullish pennant trading signal is when the price breaks above the upper trendline of the pennant pattern. This breakout confirms the continuation of the uptrend and signals a potential buying opportunity. If consolidation continues inside bearish pennant pattern entry point can be adjusted for decline of upper line of a pennant. Stop Loss: $281.00 To manage risk, it is advisable to place a stop-loss order just below the lower trendline of the pennant pattern. If the price breaks below this level, it may invalidate the bullish signal, and the trade should be exited to limit potential losses. If consolidation continues inside bearish pennant pattern stop loss should be adjusted for incline of bottom trendline of a pennant. Target Price 1: $310.00 The target price for bearish pennant can be estimated by measuring the height of the flagpole (the initial sharp price incline) and projecting it upward from the breakout point. Target price for bears: 260.00
NYSE:CAT
by vf_investment
12
Cup and Handle/Rising WedgeEarnings beat. Conflicting patterns as a cup is bullish and the wedge is bearish. Rising wedges are not valid until the bottom line is broken, so this wedge is not valid as of yet. Rising wedges can also break to the upside which this one did. Some would say a RW is caused by FOMO. It exhibits too much excitement and it causes too much supply. When price comes back down to break the wedge, there will be excessive selling but not until then. I have not seen a RW that was not eventually broken but they can be a long term pattern depending on market sentiment. The cup reached EL (long entry) level with the earnings beat. Targets for a cup are calculated using the depth of the cup. T1 has been reached. Targets calculated but the rising wedge could mess with this cup and cause a throwback. This is a large Rising Wedge (RW). It remains to be seen. There is a falling wedge at the bottom of the cup. This is opposite of a RW. Both lines slope down and converge at the apex. A Falling Wedge is bullish when the top line is broken. No recommendation
NYSE:CAT
by lauralea
2
CAT breakaway gapWill this breakaway gap in NYSE:CAT establish a new uptrend? Gaps occur when the low price of the current day is higher than the high price of the previous day. The majority of gaps are filled over time, but a sudden gap fill usually indicates a trend reversal. A breakaway gap occurs at the beginning of a trend after a period of consolidation, similar to what we've observed with CAT in October 2022 and in a downtrend in March 2023. We can project the outcome after a breakaway gap by measuring the vertical distance from the most recent swing low to the middle of the gap, and then using that same distance from the center of the gap to project the next local top of the trend. For this opportunity I will take advantage of the pullback from the market reaction to Fitch downgrading the US credit rating to enter below yesterdays close. I'll target ~$301 to take profit, which is near the top of the measured move and aligned with the 1.618 fib of the retrace from January to May. My initial stop loss is set at the gap open $270 and will be adjusted as a trailing stop to protect profit as the trend matures.
NYSE:CATLong
by Ben_1148x2
DANGER | Caterpillar Inc Short 🐛The indicators of economic distress are vast. Sometimes I don't know what to post, but you have to post something to trick the little AI bot police. Anyway, lately things have been feeling a lot like the summer / autumn of 2008. Rampant fomo everywhere, but you can tell the market is getting tired, after a ridiculous full-employment rally. So now, we have CAT (and plenty of others) showing us highs and corrective formations; meanwhile - the UNRATE remains in an increasingly unsustainable territory. Save your money.
NYSE:CATShort
by ChiefMacro
CAT: Ascending Triangle, Not confirmed (38,39%)(9/1000)(9/1000) Ascending Triangle for Caterpillar. Not Confirmed yet. Pros: 1- Bullish Ascending triangle 2- Descending volume during formation 3- PPS above 50MA and 200MA 4- R/R ratio above 5 5- 250RSI above 50 and climbing 6- 50MA above 200MA 7- 50MA and 200MA ascending. 8- RS above 0 Cons: 1- ATR is descending, less volatile 2- Triangle not confirmed yet Target price is 364.95$. Again, stay humble, have fun, make money! MAAX!
NYSE:CATLong
by LeLaf
1
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.
NYSE:CATLong
by dchua1969
CAT appears to be starting to digCAT as a blue-chip industrial is not a fast mover- it is best suited for options traders or investors. On the 4 H chart, CAT rose from the lows on a trend up from last November through this February. It then descended in a retracement about a 50% Fibonacci extent to its present value. It is now at the POC line of the volume profile for support and is near to the mean anchored VWAP line. RSI is above 50. I see this as an excellent long trade setup given that other sectors may be cooling off there may be plenty of money looking for a new home. The volume indicator shows steadily rising volumes. The stop loss is the line of one standard deviation below the the mean VWAP while the target is the even dollar immediately below the ceiling of the supply / resistance zone of the Luxalgo indicator. This seems to be a reasonable position to diversify from techonolgy which seems to be a bit overextended.
NYSE:CATLong
by AwesomeAvani