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

By Shiri Gupta

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 $146.70 and $147.70 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 $148.41 and are now at $147.22, 32% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 2.5% while the 200-day MA has risen 0.2%.

Potential upside of 17.2% exists for Caterpillar Inc, based on a current level of $147.22 and analysts' average consensus price target of $172.48. The stock should find initial support at its 200-day moving average (MA) of $130.94 and further support at its 50-day MA of $130.59.

SmarTrend recommended that subscribers consider buying shares of Caterpillar Inc on October 11th, 2019 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $127.89. Since that recommendation, shares of Caterpillar Inc have risen 15.8%. We continue to monitor CAT for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle caterpillar inc

Ticker(s): CAT