CAT closes higher for the 3rd day in a row


Caterpillar Inc. (CAT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

CAT breaks above 20-day moving average for the first time since February 21st
CAT dominated by bulls lifting the market higher throughout the day
CAT closes higher for the 3rd day in a row
CAT pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, CAT finished Thursday at 110.50 gaining $5.83 (5.57%), underperforming the Dow Indu. (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 108.50, the stock confirmed its breakout through the previous session high after trading up to $2.47 above it intraday.

Daily Candlestick Chart (CAT as at Mar 26, 2020):

Daily technical analysis candlestick chart for Caterpillar Inc. (CAT) as at Mar 26, 2020

Thursday's trading range has been $8.08 (7.71%), that's slightly above the last trading month's daily average range of $7.40. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CAT.

One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, CAT gained 3.29% on the following trading day.

Caterpillar managed to close above the 20-day moving average at 107.54 for the first time since February 21st.

Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Caterpillar. Out of 417 times, CAT closed higher 60.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.47% with an average market move of 0.71%.


Market Conditions for CAT as at Mar 26, 2020

Loading Market Conditions for CAT (Caterpillar Inc.)...
Latest Report:

CAT finds buyers again around 121.04

Apr 08, 2020
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