Current trend

Shares of Caterpillar Inc., a global manufacturer of construction and mining equipment, are rising for the second month in a row as part of a long-term upward trend: the price reversed at 234.38 (Murrey level [–1/8]) at the lower border of the ascending channel, back within the main Murrey trading range and consolidated above the reversal level of 281.25 (Murrey level [2/8]), which allows it to reach the area of 296.88 (Murrey level [3/8]) and 312.50 (Murrey level [4/8]). The key “bearish” level is 265.62 (Murrey level [1/8]), supported by the middle line of Bollinger bands. After consolidation below it, the decline can resume to 250.00 (Murrey level [0/8]) and 234.38 (Murrey level [– 1/8]).

Technical indicators confirm the continuation of the upward trend: Bollinger bands reverse upwards, and the MACD histogram is increasing in the positive zone. The exit of quotes beyond the upper Bollinger band and the entry of Stochastic into the overbought zone does not exclude a corrective decline.

Support and resistance

Resistance levels: 296.88, 312.50.

Support levels: 265.62, 250.00, 234.38.

Trading tips

Long positions may be opened from 288.25 with the target at 312.50 and stop loss around 277.00. Implementation time: 5–7 days.

Short positions may be opened below 265.62 with the targets at 250.00, 234.38 and stop loss around 275.00.