CAT (H4). Wolfe Waves action. ( reView )CAT (H4)
Within diagonal 5 wave formation 'Channel' resistance (1-3-5), rejection pin bar, ending in Wolfe waves 5, targeting 1-4 Line.
0Q18 trade ideas
Caterpillar Inc -CAT -Daily -Retest of Distribution Top - ShortThe chart shows the pattern, setup, triggers, stops and targets.
The trade sets up from the low volume rally back to the frequent trading zone over 104, up to 110.
There is a "time at mode" buy signal that is failing quite dramatically if CAT doesn't reach 107.70 by Monday's close of trading. The downside target appears to be at the 96 level (+1/-1, or 97-95). Stops are just over the recent swing high plus a point or so. Stops @ 104.20 and up.
Tim November 14, 2014 3:30PM EST 101.39 last.
Bearish Continuation Wedge (How Reliable It's)$CAT was low risk short-candidate as it approached 38.2% FIB. Posting earning momentum faded away as price approached that resistance, and if price reverse from here it may suggest a higher probability that we may see a new low or new lower low that will be hard to believe after strong earning and guiding higher. Not many analyst increased their outlook or EPS last few weeks after earning. From technical point of view, price seems to roll back to recent gains. A Continuation Wedge (Bearish) represents a temporary interruption to a downtrend, taking the shape of two converging trendlines both slanted upward against the trend. During this time the bulls attempt to win over the bears, but in the end the bears triumph as the break below the lower trendline signals a continuation of the prior downtrend. If you decide to take short position, make your stop loss at recent swing high at and around 103 area. If you want a real time alert try us www.2waytrading.com
Too much negativity for a long position.I closed my long position and waiting for the reaction at this level, in order to decide what to do next.
Extended ChannelEver since the top at 111, Caterpillar has drop 18% to 91.52.
Seeing a mild histogram bullish divergence, RSI oversold for quite sometime and support at 91.52, call option @ strike 92 was triggered.
The downtrend channel is more advanced, with extended version
$CAT - daily chartCaterpillar just broke down through its 200 day moving average for the first time since January.
Last time was a buying opportunity...
...Is this time different?
The daily Williams %R remains below -20; this indicates negative pressure.
If $CAT can't hold above ~$98 then it could fall to $92.19 and then ~$90.
Neckline = Channel BottomSince making a TOP in May 2011 around 117, Caterpillar wasn't able to make another high, it merely retest previous top and subsequently freefall to ard 80.
From the latest development, price of caterpillar is engaged in a downtrend channel.
Coincidentally, a 100% Head & Shoulder pattern just formed after friday's closed, moreover, the neckline is also part of the channel bottom support.
We will see on Monday how strong the support is.
CAT, potential bullish divergenceCAT is in Topping H&S pattern since Apr 2014.
The thick neckline holds the key to future movement of this stock.
Albeit it look bearish in price, but MACD is showing some sign of bullish divergence.
Nice bear wedge in CAT. Nice bear wedge playing out in CAT. But in this "teflon" market, it's hard to initiate shorts.
CAT classical "h-pattern"This construction mashinery company entered into strong uptrend since December 2013 after it broke up major consoldation resistance in the mid $80ish area.
Now stock with the whole sector ($MTW, $TEX, $DD, $JOY) showing relative weaknes vs broad market.
I use my 8 and 21 EMA to measure short term sentiment ant to make adjustments if i am positioned. It dropped its 8/21 EMA on 20th of May first time since mid March. And settling for a nice h-set-up which is classical pattern in technical analysis.
Break down below $100.72 may attract more active, swing traders and I expect to see some follow through.
Stop above previous swing high at $104.50 makes this trade attractive from R/R point of view.
Target is $95 previous base support level, 200 EMA.
All traders should manage this trade depend on their time-frame and strategy.
(Update): Caterpillar builds new support baseCaterpillar price managed to breach above 61.8% fibonacci level and trying to build support base above it, which assists to push the price for more positive targets, waiting for our main target around 116.94.
More support comes from the EMA50 to protect the positive scenario.
Caterpillar gets a positive motiveOn the 4-hours chart, we witnessed a double bottom formation completed by breaching 99.70 level, this pattern has the ability to push the price to head north targeting the recently recorded top at 116.94, followed by breaching this level to open the way for more gain.
EMA50 supports the bullish wave, while breaking below 97.60 will stop it.
CAT Bullish WeeklyOn a weekly chart CAT is setting up nicely for a breakout move. It is in a tight consolidation range which Bill Williams refers to as the saddle point. I have highlighted the first bullish fractal. Will be setting my buy stop 2 ticks above that high. One could also put in a short entry on the fractal below the alligator. Either way this is a high probability setup.
My stops would be just below the alligator (blue line) for a low risk entry or as Williams says taking your trade in the low rent district LOL. My first target would be 50% retrace from the high of the sell off..
CAT monthly CAT is coiling big time in the monthly a huge move out of the wedge must be in the cards soon
CAT finally out of the bag?? Speculating Long breakoutI initiated Tier 1 size long at $83.50. Might add a bit more depending on the close today. Risk is roughly 1-1.5% (below today's low) and reward should be roughly 6-7% (recent pre-earnings gap high)
*Bullish breakout isnt confirmed yet. I am cheating to the long side.
SHORT TRADE WITH 3.19 REWARDSPossible short trade as price is trapped and doing a rolling pin action between the purple sliding parallel and near the median line.
