Goldman recommended CAT at the top, and downgraded it 25 points lower.
2 scenarios: 1. If price breaks trend and closes ABOVE trend line, enter after trendbreak bar 2. Let price retract to the support line and enter there I think both are good scenarios because of a higher RSI at support, high volume peaks
go with the trend.. markets down so does the stocks... 81.29 is support ...
Reanings release: October 22, 2012 Before The Open Consensus 2.26 Yr Ago 1.71 www.briefing.com
Cat has been down 8 days in a row. Looking for 1 more push down to the 84 level for a perfect entry. However I will consider taking a small position on any weakness Tuesday morning.
CAT is in a longer term bullish uptrend. We are watching CAT for one of two scenarios. Either a channel breakout with confirmation at 95 or a pullback on the stochastics with a ideal entry below 90. With a slight bias towards the 1st scenario.
After forming double bottom in recent months CAT chart shows high probability for W-shaped formation. That means target area between $108-$112.
Looking to short with a small position with a target of $91.
I'll be looking for a entry Tuesday morning (9/4/2012) in the 85's. I'll be running a tight stop @ 84.25 The S&P is at a critical level and will make a decisive move to one direction or the other. We should find out which way this week. CAT needs a strong market/economy to make a move into the upper box.
CAT is still BEARISH.Stochastic is imbedded(below20), the Force Index is flat below "0" and price below 10MA.
Heavy equipment maker IR (Ingersoll-Rand) has been outpacing CAT in the past year. The recent setback in CAT wasn't matched by a drop in the shares of IR and a spread has opened up in the performance of these two securities. I have played the short side of CAT and IR off and on for the past few months, but this way of setting up a trade between these two...