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 260usd strike price Puts with
an expiration date of 2023-8-4,
for a premium of approximately $5.40.
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.
0Q18 trade ideas
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.
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.
CAT idea long wedge vs breakdownI just posted a CAT long idea. (check my profile for context on that)
I mentioned a breakdown but didn't draw it out so decided to make another post (this one).
I'm looking out for both options.
CAT has strong fundamentals and i can't imagine it getting absolutely wrecked, even in worsening economic conditions.
Caterpillar: At site 🚧Caterpillar is at site, working on wave (2) in magenta, which should lead further downwards into the magenta-colored zone between $198.40 and $171.37. From there, the share should turn upwards again, climbing above the resistance at $266.04. However, there is a 34% chance that Caterpillar could slip through the magenta-colored zone and drop below the support at $160.02. In that case, we would expect the share to develop a new low in the form of wave alt.2 in green first before heading upwards again.
CAT is a BUY +++CAT has bounced nicely off support of $215 ish 6 times and the moving averages are crossing upward. I would expect some buying support in coming days with new moon phase. CAT resistance $234 which it hit this morning, cloud resistance around $245 and overhead resistance of $247, if it breaks above all these we have a 52 week high to break through of $266