CAT closes higher for the 2nd day in a row
Caterpillar Inc. (CAT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CAT finished the month 5.3% higher at 126.50 after gaining $1.25 (1.0%) today, slightly outperforming the Dow Indu. (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 126.04, the stock confirmed its breakout through the previous session high after trading up to $1.02 above it intraday.
Daily Candlestick Chart (CAT as at Jun 30, 2020):
Tuesday's trading range has been $3.05 (2.46%), that's below the last trading month's daily average range of $3.83. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CAT.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 124.74 (S1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 127.57 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Caterpillar. Out of 769 times, CAT closed higher 52.28% 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 56.57% with an average market move of 0.58%.