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

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Caterpillar (NYSE:CAT) based on the price action in the company's shares. Today's price range of $94.57 and $95.39 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 may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

There is potential upside of 3.5% for shares of Caterpillar based on a current price of $94.62 and an average consensus analyst price target of $97.90. The stock should discover initial support at its 50-day moving average (MA) of $74.96 and subsequent support at its 200-day MA of $71.11.

Caterpillar share prices have moved between a 52-week high of $99.46 and a 52-week low of $56.36 and are now trading 68% above that low price at $94.62 per share. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has advanced 1.0%.

Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, 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. Please refer to our Company Overview for the results of our proprietary technical indicators that have been scanning shares of Caterpillar in search of a potential trend change.

Keywords: bearish inside day candle Caterpillar

Ticker(s): CAT