(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.
CAT trade ideas
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 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.