CAT breaks below previous session low


Caterpillar Inc. (CAT) Technical Analysis Report for Jun 14, 2018 [1 min read]
Highlights
CAT breaks below 100-day moving average
CAT closes below its opening price unable to hold early session gains
CAT unable to break through key resistance level
CAT closes lower for the 2nd day in a row
CAT ends the day on a bearish note closing near the low of the day
TQ Sentiment
Report Sentiment: 70% Bearish
Technical Forecast:
Overview

Moving lower for the 2nd day in a row, CAT finished Thursday at 153.14 losing $1.57 (-1.01%). Today's closing price of 153.14 marks the lowest close since June 5th. Trading $1.66 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 154.51, the share confirms its breakout through the prior session's low having traded $1.75 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.

Daily chart for CAT
Volatility

Thursday's trading range was $4.60 (2.95%), that's far above last trading month's daily average range of $2.77. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being way below average.

Price Action

In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.

Support/Resistance

Prices are trading close to a key support level at 151.46. Unable to break through the key technical resistance level at 156.74, Caterpillar closed below it after spiking as high as 157.36 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move above 157.35 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 157.36.

Trend

While still in a long-term downtrend, the short and medium-term trends both turned bullish already. CAT broke below the 100-day moving average at 153.31 today for the first time since May 31st.

Conclusion

While classical technical analysis indicates a bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for Caterpillar Inc.
Condition Forecast Direction Win Avg Worst Best Events
Close to R1 Resistance TQ Pro Members Only
Low close to previous two Lows TQ Pro Members Only
Low close to previous low TQ Pro Members Only
High close to previous High TQ Pro Members Only
Bounced off Technical Resistance R1 TQ Pro Members Only
More market conditions identified for TQ Pro members...
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