Don't Ignore This Chart!

Caterpillar (CAT) Wiggles To All Time Highs

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Caterpillar continues to track higher on the price charts but in May the chart has reached an interesting level.


Caterpillar broke above a 6 year consolidation in late April and has been consolidating since then.

The above chart shows Caterpillar breaking out and holding the gains so far.

The picture  above shows Caterpillar has lots of smaller equipment that is required in and around residential construction. The current breakout in emerging markets showing global growth improving suggesting watching the Caterpillar price action. Another factor is the large mining companies. Below is the chart for Finning which is the largest Caterpillar dealer in the world. Any correlated breakout or breakdown in the two charts would be meaningful information.

Right now both are holding around resistance areas with CAT exceeding the all time highs but not being able to go higher. Keep an eye on both. If they turn up from here, you might want to dig into some.

Good trading,
Greg Schnell, CMT, MFTA.

 
Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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