Caterpillar Inc. $CAT) Shares of industrial stock
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Posted On: 05/10/2017 3:17:50 PM
Caterpillar Inc. $CAT)
Shares of industrial stock Caterpillar Inc. (CAT) are higher by just about 2% for the year-to-date, and it's hardly in a straight line. While CAT stock rallied about 18% between the election and its February highs, the company has largely struggled since federal authorities raided its offices in early March.
Through a multimonth lens, Caterpillar shares are largely consolidating — and awaiting another catalyst for its next directional move. Of course, Caterpillar's April 25 earnings report could well be the next trigger that investors are waiting for.
Looking at a CAT chart, the initial up-gap and rally following last November's U.S. election results quickly moved CAT stock to the upper end of its uptrending channel. While there were a few more percentage points to be had on the upside in the second half of January, the early December highs were just barely overcome before CAT slipped back lower and back and forth in the blue trading range on the chart.
Since March, Caterpillar is once again trading near the lower end of this year-to-date trading range. This end also coincides with the uptrend support line from January 2016.
The way Serge sees it, there are two moves following the earnings report that would be meaningful enough to merit a reaction from traders and investors (both on a daily closing basis):
A break-and-hold below $90
A break-and-hold above $99.50
If it's the former, this could lead to an initial move lower into the mid-$80s. If it's the latter, this could lead to a move into the $108-$110 area.
Shares of industrial stock Caterpillar Inc. (CAT) are higher by just about 2% for the year-to-date, and it's hardly in a straight line. While CAT stock rallied about 18% between the election and its February highs, the company has largely struggled since federal authorities raided its offices in early March.
Through a multimonth lens, Caterpillar shares are largely consolidating — and awaiting another catalyst for its next directional move. Of course, Caterpillar's April 25 earnings report could well be the next trigger that investors are waiting for.
Looking at a CAT chart, the initial up-gap and rally following last November's U.S. election results quickly moved CAT stock to the upper end of its uptrending channel. While there were a few more percentage points to be had on the upside in the second half of January, the early December highs were just barely overcome before CAT slipped back lower and back and forth in the blue trading range on the chart.
Since March, Caterpillar is once again trading near the lower end of this year-to-date trading range. This end also coincides with the uptrend support line from January 2016.
The way Serge sees it, there are two moves following the earnings report that would be meaningful enough to merit a reaction from traders and investors (both on a daily closing basis):
A break-and-hold below $90
A break-and-hold above $99.50
If it's the former, this could lead to an initial move lower into the mid-$80s. If it's the latter, this could lead to a move into the $108-$110 area.
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