Caterpillar Inc - (CAT) - October 28, 2022
Heavy equipment producer Caterpillar (CAT) returned to the Green Favored Zone in the SIA S&P 100 Index Report yesterday for the first time since June. A summer drop into the red zone bottomed out between July and September. This month, CAT’s relative strength has improved with a climb back up the rankings accelerating. Yesterday it finished in 21st place, up 5 spots on the day and up 47 positions in the last month.
Over a three-week period in late September and early October, a downtrend in Caterpillar (CAT) shares bottomed out in a Morning Star candlestick pattern (circled). Since then, Caterpillar has come under renewed accumulation. In recent weeks, CAT has regained its 50-day moving average, broken out over the $200.00 round number and snapped a six-month downtrend line, all combining to confirm the start of a new recovery trend.
Initial upside resistance appears at previous highs near $225.00 then $237.50.Initial support appears near $190.00.
A downtrend in Caterpillar (CAT) shares that started back in mid-2021 was finally contained earlier this month by support at a long-term 45-degree uptrend line and a previous breakout point near $160.00. In recent weeks, the shares have come under renewed accumulation, staging a bullish Triple Top breakout that has extended into a bullish High Pole.
Based on a horizontal count and the previous column highs, next potential upside resistance on trend appears near $218.65, then $227.50 and $236.70. Initial support appears near $194.15 based on a 3-box reversal and a retest of the recent breakout point.
With its bullish SMAX score increasing to 9, CAT is exhibiting strength relative to the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.