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

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Caterpillar Inc (NYSE:CAT) based on the price action in the company's shares. Yesterday's price range of $116.53 and $117.70 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. Owners of Caterpillar Inc may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Caterpillar Inc share prices have moved between a 52-week high of $149.96 and a 52-week low of $87.50 and closed yesterday at 37% above that low price at $120.06 per share. In the last five trading sessions, the 50-day moving average (MA) has fallen 1.1% while the 200-day MA has slid 0.2%.

Caterpillar Inc (NYSE:CAT) has potential upside of 43.7% based on a current price of $120.06 and analysts' consensus price target of $172.48. Caterpillar Inc shares should encounter resistance at the 200-day moving average (MA) of $129.72 and support at the 50-day MA of $114.54.

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.

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: bearish am inside day candle caterpillar inc

Ticker(s): CAT