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

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Caterpillar Inc (NYSE:CAT) based on the price action in the company's shares. Yesterday's price range of $136.63 and $137.02 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. Traders and investors interested in shares of Caterpillar Inc may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

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.

In the past 52 weeks, Caterpillar Inc share prices have been bracketed by a low of $111.75 and a high of $149.96 and closed yesterday at $136.86, 22% above that low price. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has remained constant.

There is potential upside of 26.0% for shares of Caterpillar Inc based on a current price of $136.86 and an average consensus analyst price target of $172.48. The stock should hit resistance at its 50-day moving average (MA) of $142.65, as well as support at its 200-day MA of $133.43.

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: bullish am inside day candle caterpillar inc

Ticker(s): CAT