• Return to Headlines

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 $127.68 and $128.28 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. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Its Construction Industries segment offers asphalt pavers, compactors, cold planers, feller bunchers, harvesters, motorgraders, pipelayers, road reclaimers, skidders, telehandlers, and utility vehicles; backhoe, knuckleboom, compact track, multi-terrain, skid steer, and track-type loaders; forestry and wheel excavators; and site prep and track-type tractors.

In the past 52 weeks, Caterpillar Inc share prices have been bracketed by a low of $111.75 and a high of $144.77 and are now at $128.16, 15% above that low price. In the last five trading sessions, the 50-day moving average (MA) has remained constant while the 200-day MA has remained constant.

There is potential upside of 34.6% for shares of Caterpillar Inc based on a current price of $128.16 and an average consensus analyst price target of $172.48. The stock should hit resistance at its 200-day moving average (MA) of $130.16, as well as support at its 50-day MA of $122.50.

SmarTrend is monitoring the recent change of momentum in Caterpillar Inc. Please refer to our Company Overview for the results of our proprietary technical indicators that have been scanning shares of Caterpillar Inc in search of a potential trend change.

Keywords: bearish inside day candle caterpillar inc

Ticker(s): CAT