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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. Yesterday's price range of $130.05 and $132.32 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.

Potential upside of 31.4% exists for Caterpillar Inc, based on a current level of $131.24 and analysts' average consensus price target of $172.48. Caterpillar Inc shares should encounter resistance at the 200-day moving average (MA) of $139.97 and support at the 50-day MA of $126.47.

In the past 52 weeks, Caterpillar Inc share prices have been bracketed by a low of $112.06 and a high of $173.24 and closed yesterday at $131.24, 17% above that low price. Over the past week, the 200-day moving average (MA) has gone down 0.3% while the 50-day MA has advanced 1.3%.

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.

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 am inside day candle caterpillar inc

Ticker(s): CAT