Daily Stock Report

Caterpillar Inc. - (CAT) - September 10, 2020 

Caterpillar (CAT) recently returned to the Green Favored Zone of the SIA Dow Jones Industrial Average Report from a brief dip into the yellow zone and is currently sitting in 7th place.    

The technical picture for Caterpillar (CAT) continues to improve with a number of recent bullish signals appearing lately, including, the snapping of a long-term downtrend line, breakouts over $145 and $150 to their highest level since early 2018, and a Golden Cross of the 50 and 200 day averages. These indicators have combined to confirm the upward trend which started back in March. 

Next potential upside resistance appears at the previous high near $162, followed by $175 where a round number and measured move converge. Initial support appears near the $150 round number, then a previous breakout point near $142. 

Building on a recent bullish Double Top breakout, Caterpillar has rallied up above $150.00 to complete a larger bullish Spread Double Top and confirms continuing accumulation. Next potential upside resistance may appear at the previous high near $164.00, then the $174.00-$177.00 range and near $188.50 based on vertical and horizontal counts. Initial support appears near $140.10 based on a 3-box reversal and a previous breakout point. With a perfect SMAX score of 10, CAT is exhibiting near-term strength across the asset classes. 

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