CAT trade ideas
CAT lesson - Open was Bullish & End was BearishYou need to understand that price action always comes back to 20 moving average or middle of Bollinger Indicator. When anything is overstretched, like a rubber band and let go, it will come back to normal or back in balance. No price action can continue to either go up and/or down for long, that is why oversold and/or overbought areas are very important, in your trading.
*IF you were all in buying CAT at beginning of today and did not understand this LESSON, you would have took a huge loss of $15.00 per share. Be flexible and understand price action and trust both your EYES and charts, they will tell you were they are going in the future.
$CAT Downtrend Breakout$CAT now in uptrend after bullish break of downtrend line. Also note AO indicator has turned positive, another bullish signal.
CATZigZag Correction contained within parallel lines with a Ending Diagonal C Wave. Where are we wrong. A close below (iii.) or lower channel. A close above the channel or (iv) triggers us long with the minimum expectation that the correction will be fully retraced or Target 1
CAT shares Buy IdeaCAT shares Buy Idea @Monthly Demand Zone (118.86 - 112.19)
Buy Limit: 118.58
Stop Loss: 109.10
Take Profit: 143.32
CAT Triangle BreakoutA lot of big names stocks that follow the SPY fairly close to 1:1 are making these patterns. CAT is one of them. If it can break the 50sma and the top rendline an entry around 162.50 looks good for the breakout.
CAT ShortFlipped CAT to a short idea (or put play).Hanging on to horizontal support. If it breaks, likely tests 200 day SMA which is about 10 points below.
CAT deciding where to go...CAT is deciding where to go but indeed is just >51% bearish and I'm still out.
What do you think about?
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CAT breaking a key fib fan zoneThis CAT move lower is just starting. A huge move lower is setting up.
CAT LongDaily chart on CAT is bullish upon trendline break. W pattern as well. Highly dependent on DOW30 movement as well (since CAT is a component).
LONG TERM SHORT ON CATShort from 155 will continue to sell up to 175. Will cut at 180.
- Z score 2.33 that shows the company is in some distress.
- In the construction industry growth with slow- down in the back half of 2018 due to in the impact of seasonal sales in China. 2018 material costs inflation will affect their margin.
- Period costs with increase due to labour inflation and targeted investments in growth initiatives including expanded services and offerings.
- CAT is currently facing investigation by US government that has included search warrant activity at three locations. Potential fines and penalties have not been announced by the government. If it is found guilty, it will be a blow to its reputation and share price.
- During 2016, the company had $1.09bn of restructuring costs. In 2017, the restructuring costs were $1.256bn. Forecasts predict a $400mn restructuring costs for 2018.
- Caterpillar has benefited from natural disasters this year, but as housing starts to eventually slow down and commercial construction may slow down, it will play a significant role in caterpillars results. If these activities were to decrease, demand for CATs products, may be significantly impacted.
- The company is experiencing problems in regard to the supply chain to ramp production.
- $1.5bn Short interest
NeroTree Capital gives CAT a rating of sell with a price target of 120 over the next 52w.
CAT Bearish CrabProbably too late to make any plays, but I just thought this was an ideal looking crab pattern with nice bearish divergence.
CAT someone was accumulating big time todayMany sweeps firing off on CAT. Should be into trend resistance tomorrow with XLI just now bouncing off trend support. Looking like a good odds trader.
