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After Yesterday's Rally of 1.26% Shares Could Potentially Pullback

By Amy Schwartz

Caterpillar (NYSE:CAT) traded in a range yesterday that spanned from a low of $72.28 to a high of $73.35. Yesterday, the shares gained 1.3%, which took the trading range above the 3-day high of $73.17 on volume of 2.4 million shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.

Over the past year, Caterpillar has traded in a range of $56.36 to $89.62 and is now at $73.17, 30% above that low. 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 its subscribers protect gains by selling shares of Caterpillar on May 4th, 2016 by issuing a Downtrend alert when the shares were trading at $75.10. Since that call, shares of Caterpillar have fallen 3.8%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: rebounders Caterpillar

Ticker(s): CAT