1CAT trade ideas
CAT - more upsideCAT consolidated for 10 months forming a cup like pattern. There was a minor handle before we see a strong break up last Thurs on strong volume.
The odds are good that it has some room to go , though we are likely to face resistence and some consolidation @ 243. If it can clear this level, then the next targt is 260.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Cheers.
Cat ShortCondition: Ranging/trending. Overly ambitious sentiment that CAT will rebuild Ukraine.
Entry: Wait until after earnings. Test of trend, potentially an overbought daily stoch.
Stop: 0.5% above swing high from 18th Jan.
Target: 2:1 R minimum/ Early Feb consolidation/historic midline.
Downtrend noted since May 21
Current (general) preferred entry ticker conditions and entry signals are either.
a) Reversion to mean from overextension, providing there has been evident support from historical price action and/or a bullish/bearish pintail or rejection evident by an engulfing candle immediately after the supposed support/rejection.
b) Oscillators (Daily/Weekly Stoch as well as the Average Sentiment Oscillator) all providing confluence with a trend line/support level.
Maintain 2:1 RR, use retracements as much as possible. If over extended and sufficient confluence and I'm at my computer, consider a market order.
Establish confluence of support/resistance, trend, oscillators, congruent candles (pintail or engulfing reversal).
CAT ,a gauge of economy, may retrace to 200 for a RS; TP=288CAT may be finishing the head of a head & shoulder pattern up to the 237 Resistance zone( also upper side of the green Megaphone). Then it may go down to 200 to make the RS this coming May. Measured target of this H&S will be 288 which is also 1.618 Fibo of the whole wave IV.
179.67 may already be the low of wave IV Megaphone pattern. The final wave V might be in 2023 where a BIG ABC correction may come to reset the market. (Recent yield curve inversion signals a recession within 1 or 2 years)
Not trading advice
CAT and DE: SHORT OF THE DAYCAT and DE are two of those companies that have been trading like TECH companies over the last year and they have significant moves to the downside coming over the next two weeks. Systematically, you can see the significant to then the consolidation phase. Look for a lot of selling over the next few weeks from these two stocks. I have a PT of 160 for CAT and 322 for DE.
Also, there has been insider selling from both of these companies. Most notably - Rajesh Kalathur, President, JD Financial & CIO, on March 07, 2022, sold 32,391 shares in Deere (DE) for $12,956,400.
Not financial advice
Cat is going for $250 with the market . +25% prospected move.Cat is going for $250 with the market . +25% prospected move.
A clear new trend is forming with multiple HH's and LL's with a monthly strong uptrend, thus we have a high probability of a prospected move ahead.
Target is $250 which is the 52WH .
Caterpillar Staggers After High-Volume DropCaterpillar was one of the first big cyclicals to rally back from 2020’s crash. But it’s been showing signs of fatigue more recently.
The first pattern on today’s chart is the lower high versus June. The broader S&P 500 and Dow Jones Industrial Average made new highs in early January, but CAT has gone more than six months without the same feat.
Second is the high-volume bearish gap on January 28. Its 5 percent drop that session was the biggest one-day decline in over a year.
Third, the selloff planted its shares under both the 50- and 200-day simple moving averages (SMAs). They have stayed there since. It’s also noteworthy that the 50-day SMA has remained under the 200-day SMA since late in the third quarter.
CAT has tried to hold a trend line that began in September following the recent plunge. Traders may now watch this pattern as key support, with the potential for more selling if it breaks.
There was also a bearish outside week as the stock peaked in mid-January:
Finally, the fundamental backdrop may be less supportive after CAT warned of costs pressuring margins last quarter.
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$CATPlaying a relief rally up towards gap fill, 0.5 fib extension and 200 Day MA. This could hopefully form a potential H&S pattern.
Along a horizontal support and has just bounced off a well tested diagonal support.
Daily RSI and MACD showing hidden bullish divergence.
Target = Gapfill/0.5 fib extension/200 Day MA
Stop = A close below diagonal support. (Take caution with a close under horizontal support)
$CAT downside to 186, 173, 150CAT has slowly been unwinding with lots of volume on every move to the downside while seeing lower relative volume of buyers bidding up the price.
I'm looking for CAT to make one more swing up to look for any buyers near 208 and 217 areas. If we get a rush of volume to support the move then we should the continued trend to the upside of the pitchfork.
Downside:
I've left my fib levels to watch for areas of rejection. I'll also be taking a look at volume and strength of buying vs selling to look for weakness to the downside.
Should we lose the pitchfork median we will easily go to 150 by summertime (or even after earnings).
There are some headwinds away with the build back better plan possibly being killed, issues with supply and manufacturing in China, etc.
CAT (D) Bearish Butterfly Investment information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy service is offered individually, taking into account the risk and return preferences of individuals. The content, comments and recommendations contained herein are in no way guiding, but are of a general nature. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not yield results that meet your expectations. Burada yer alan yatırım bilgi, yorum ve tavsiyeleri yatırım danışmanlığı kapsamında değildir. Yatırım danışmanlığı hizmeti, bireylerin risk ve getiri tercihleri dikkate alınarak bireysel olarak sunulmaktadır. Burada yer alan içerik, yorum ve tavsiyeler hiçbir şekilde yol gösterici olmayıp genel niteliktedir. Bu öneriler finansal durumunuz ile risk ve getiri tercihlerinize uygun olmayabilir. Bu nedenle, sadece burada yer alan bilgilere dayanarak bir yatırım kararı vermek, beklentilerinizi karşılayan sonuçlar vermeyebilir.
Inverse Head and Shoulders Earning 1-28 Before market open.
Recently overbought with RSI set on 80 but is No longer overbought on daily, weekly or monthly RSI.
With the volatility of the market as of late, possible stop below upper trendline of triangle looks safest if you plan to hang and under the neckline if you are being more cautious. The ATR is 4.62. You can also multiply the ATR x 2 and subtract that from price and place a stop there. It does seem to me that price often pulls back some before earnings, but not always.
Average true range (ATR) is a volatility indicator that shows how much an asset moves, on average, during a given time frame. The indicator can help day traders confirm when they might want to initiate a trade, and it can be used to determine the placement of a stop-loss order.
No recommendation. Long entry level can be paramount. The red candle yesterday tested the neckline for support. I meant to circle it but forgot and you can't go back Bob (o:
Good judgement often comes from experience and experience can come from the mistakes we make (o:
CAT looks like it don't have power to go higher. Hi everyone, Yurii Domaranskyi here. Let's take a look at the chart:
1. Horizontal Price levels are working good
2. globally downtrend, locally uptrend
3. the price level confirmed by a touch
4. that was a near test, but we see week close under the level
5. approached the level sharply
6. the move was with no rollbacks
7. no accumulation
8. no rollback
9. we see that 1 bar closed above the level and 2nd opened above and closed below
10. level of a rollback
11. enough room for a move with r/r 1 to 5.1
12. no model of ascending lows
13. no news in the last 10 days
14. the price came from above, and we see that it can't go higher
15. we have enough room for a move
16. the report on January 27
Potential risk/reward ratio = 1 to 5.1 meaning that potential risk 100$ with the possibility to make 510$
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