$CAT on watch for short entry Another stock I hav

$CAT on watch for short entry

Another stock I have been enjoying success daytrading is Catapillar. The stock traded as high as 116 earlier this year but saw a steep drop before putting in a low at 78.17. It is now just consolidating inside of that steep drop and most likely getting ready to resume it's decline. The price is trading below below all of the moving averages at the moment and is showing a textbook bearish consolidation on the daily and the weekly chart.

Even more telling is that last week it tried to rally off the recent lows at 85 but was unable to hold the gains and basically fell apart like a Jenga tower every time it came within striking distance of the 50 DMA.

There is a lower trendline that I drew on the chart which will serve as my signal for entry. A close below that line on daily basis will give me an entry signal, and any close back above will give me an exit signal.

First downside target: 82.50

Second downside target: 79

[IMG]http://i.imgur.com/4J3Uq.png[/IMG]