Demand Supply Analysis
The stock has been trending within an ascending channel, reflecting strong demand after breaking out of prior resistance.
Recent bullish candles have been accompanied by increasing volume, confirming that buyers are in control. The breakout from the recent consolidation zone occurred on higher-than-average volume, which is a classic Wyckoff signal of strength (SOS).
Price consolidated recently after earnings reporting. However, potential government spending on infrastructure could be potentially topline catalyst for the company.
Technical Indicators Analysis
Relative Strength against S&P 500: CAT has shown relative strength against SPY (S&P 500), as indicated by the upward momentum in its price compared to the broader market. This strength highlights CAT's leadership within its sector.
Stochastic Oscillator: The stochastic oscillator reversal could present rebound from short-term pullbacks.
Target Price and Risk Management
First Target: $418.50
This level aligns with the upper bound of the current trend channel and serves as a logical profit-taking zone for traders.
Stop-Loss: $378
A break below this level would invalidate the current bullish structure and signal a potential move back into consolidation or weakness.
First Target: $418.50
This level aligns with the upper bound of the current trend channel and serves as a logical profit-taking zone for traders.
Stop-Loss: $378
A break below this level would invalidate the current bullish structure and signal a potential move back into consolidation or weakness.
Disclaimers Apply