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Caterpillar Inc.: Murrey analysis

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Caterpillar Inc.: Murrey analysis
Scenario
TimeframeWeekly
RecommendationBUY
Entry Point392.51
Take Profit406.25, 421.88
Stop Loss380.00
Key Levels343.75, 359.38, 375.00, 390.62, 406.25, 421.88
Alternative scenario
RecommendationSELL STOP
Entry Point374.95
Take Profit359.38, 343.75
Stop Loss387.50
Key Levels343.75, 359.38, 375.00, 390.62, 406.25, 421.88

Current trend

Shares of Caterpillar Inc., a manufacturer of construction and mining equipment, are actively growing for the fourth week in a row within the medium-term uptrend: during this time, the price reversed from the 328.12 mark (Murrey level [5/8]), went beyond the main Murrey trading range, breaking through its upper limit, and is currently testing the level of 390.62 (Murrey level [ 1/8]) in the upper reversal zone. After consolidation above it, the upward dynamics will strengthen towards the targets of 406.25 (Murrey level [ 2/8]) and 421.88 (Murrey level [ 2/8], W1). The key for the "bears" is the level of 375.00 (Murrey level [8/8]), with a repeated breakdown of which the decline will continue to the levels of 359.38 (Murrey level [7/8], the central line of Bollinger Bands), 343.75 (Murrey level [6/8]).

Technical indicators confirm the continuation of the uptrend: Bollinger Bands are reversing up, MACD is increasing in the positive zone, and Stochastic is leaving the overbought zone, which does not exclude a corrective decline, but its potential is seen to be limited.

Support and resistance

Resistance levels: 390.62, 406.25, 421.88.

Support levels: 375.00, 359.38, 343.75.

Caterpillar Inc.: Murrey analysis

Trading tips

Long positions can be opened above the 390.62 mark with targets of 406.25, 421.88 and a stop-loss around 380.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 375.00 with targets of 359.38, 343.75 and a stop-loss around 387.50.


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