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

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Caterpillar (NYSE:CAT) based on the price action in the company's shares. Yesterday's price range of $93.49 and $94.35 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 may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

In the past 52 weeks, Caterpillar share prices have been bracketed by a low of $56.36 and a high of $99.46 and closed yesterday at $94.14, 67% above that low price. The 200-day and 50-day moving averages have moved 0.21% lower and 0.99% higher over the past week, respectively.

Caterpillar has overhead space with shares priced $94.14, or 3.8% below the 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 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: bullish am inside day candle Caterpillar

Ticker(s): CAT