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Possible Bearish Inside Day Candle Pattern Detected for Caterpillar Inc (NYSE:CAT)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Caterpillar Inc (NYSE:CAT) based on the price action in the company's shares. Today's price range of $139.05 and $140.09 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Caterpillar Inc may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Caterpillar Inc. designs, manufactures, and markets construction, mining, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

There is potential upside of 23.9% for shares of Caterpillar Inc based on a current price of $139.26 and an average consensus analyst price target of $172.48. Caterpillar Inc shares should first meet resistance at the 50-day moving average (MA) of $147.61 and find additional resistance at the 200-day MA of $147.96.

Over the past year, Caterpillar Inc has traded in a range of $105.11 to $173.24 and is now at $139.26, 32% above that low. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has declined 0.3%.

SmarTrend is tracking the current trend status for Caterpillar Inc and will alert subscribers who have CAT in their portfolio or watchlist when shares have changed trend direction.

Keywords: bearish inside day candle caterpillar inc

Ticker(s): CAT