1CAT trade ideas
CAT idea long wedge vs breakdownI just posted a CAT long idea. (check my profile for context on that)
I mentioned a breakdown but didn't draw it out so decided to make another post (this one).
I'm looking out for both options.
CAT has strong fundamentals and i can't imagine it getting absolutely wrecked, even in worsening economic conditions.
Caterpillar: At site 🚧Caterpillar is at site, working on wave (2) in magenta, which should lead further downwards into the magenta-colored zone between $198.40 and $171.37. From there, the share should turn upwards again, climbing above the resistance at $266.04. However, there is a 34% chance that Caterpillar could slip through the magenta-colored zone and drop below the support at $160.02. In that case, we would expect the share to develop a new low in the form of wave alt.2 in green first before heading upwards again.
CAT is a BUY +++CAT has bounced nicely off support of $215 ish 6 times and the moving averages are crossing upward. I would expect some buying support in coming days with new moon phase. CAT resistance $234 which it hit this morning, cloud resistance around $245 and overhead resistance of $247, if it breaks above all these we have a 52 week high to break through of $266
CAT: Ride Long TradeCAT follows my China/Macau Recovery Theme and it's too expensive for me to run an options trade. CAT similar to LVS, was showing independent price movement from the broad market drops we have seen starting on the 15 Feb.
Increasing Annual Rev
Increasing Quarterly Rev
1.62% Short Interest
CAT Swing Long Reversal UPDATECAT is now bottoming for a SALE just in time for seasonal construction and agricultural upticks.
The long view is a long uptrend that started in September and ended with a lousy earnings report in
early February. The beatdown is now ending perhaps for fundamental reasons including CAT
has cash and down not need high-interest rate costs.
See the chart for the analysis. See also the previous idea. Check DE.
I see this as an intermediate-term swing long or investment or a good choice for a long expiration
call contract of options.
[CAT] - Daily - ShortZoomed in on daily.
Last trading day Fri 17 Feb 2023, we wicked right off the C.E. of the rejection block and the upper level of the daily bearish breaker.
Currently sitting right at the C.E. of the daily bearish breaker. Want to see us move towards the lower half of the breaker and trade through it, attacking the sellside liquidity at the RELs.
CAT Swing Long ReversalCAT has a downtrend 10% from its 30-day high.
However, fundamentally the industrial is holding up quite well.
The downtrend was inverse parabolic accompanied with
an appropriate volume pattern showing 3X relative volume
This is sometimes called the retirement trade pattern
or V-type pattern. CAT has dropped to three standard
deviations below the anchored VWAP /
This makes it undervalued well below fair value.
I see this as a good setup for a long swing trade or a call options
contract with the expectation of a 50% retracement of a
10# drop or a 5% price target For the call options I will
target the anchored VWAP at a strike of $243 about 12 DTE.