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

By Nick Russo

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 $105.01 and $105.59 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.

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.

Caterpillar (NYSE:CAT) defies analysts with a current price ($105.15) 6.9% above its average consensus price target of $97.90. Caterpillar shares have support at the 50-day moving average (MA) of $74.96 and additional support at the 200-day MA of $71.11.

Caterpillar share prices have moved between a 52-week high of $105.98 and a 52-week low of $56.36 and are now trading 87% above that low price at $105.15 per share. In the last five trading sessions, the 50-day moving average (MA) has climbed 1.0% while the 200-day MA has slid 0.2%.

SmarTrend recommended that subscribers consider buying shares of Caterpillar on April 10th, 2017 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $96.99. Since that recommendation, shares of Caterpillar have risen 8.9%. 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

Ticker(s): CAT