We can clearly the Descending Triangle in the share price movement that developed since the beginning of 2018 that could be very positive for CAT, should be see a break and close above resistance level at $142/share. The share price enjoyed a nice bounce with its 14-day RSI moving out of Oversold territory. We’ve seen the recent negative momentum turning somewhat, but the short-term trend still seems to be negative. Should the bounce continue off current levels and we see a positive turn in momentum, we could see first resistance levels at $129, with both the 50-day and 200-day moving averages then acting as a very strong resistance. A break and close above these levels could very much see CAT test the top of the triangle at $142. Thomson Reuters consensus target price on the company is $148.65.
Should the negative trend however continue, the level to watch on the downside would be $112.30, which has been acting as a firm support level for the past 2 years.
Should the negative trend however continue, the level to watch on the downside would be $112.30, which has been acting as a firm support level for the past 2 years.