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

By Nick Russo

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. Yesterday's price range of $139.05 and $140.54 is within the prior day'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.

Caterpillar Inc share prices have moved between a 52-week high of $173.24 and a 52-week low of $105.11 and closed yesterday at 33% above that low price at $139.42 per share. Over the past week, the 200-day moving average (MA) has gone up 0.2% while the 50-day MA has declined 0.4%.

Caterpillar Inc has overhead space with shares priced $139.42, or 19.2% below the average consensus analyst price target of $172.48. Caterpillar Inc shares should first meet resistance at the 50-day moving average (MA) of $147.40 and find additional resistance at the 200-day MA of $148.03.

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 am inside day candle caterpillar inc

Ticker(s): CAT