CATERPILLAR INC (CAT) Stock Technical Analysis
NYSE:CAT • US1491231015
We assign a technical rating of 10 out of 10 to CAT. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CAT is showing a nice and steady performance.
- Both the short term and long term trends are positive. This is a very positive sign.
- When comparing the yearly performance of all stocks, we notice that CAT is one of the better performing stocks in the market, outperforming 95% of all stocks. On top of that, CAT also shows a nice and consistent pattern of rising prices.
- CAT is part of the Machinery industry. There are 131 other stocks in this industry. CAT outperforms 96% of them.
- CAT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
- CAT is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
- CAT has an average volume of 2835940 traded shares per day. This is a good sign as it is always nice to have a liquid stock.
Besides having an excellent technical rating, CAT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 759.73, a Stop Loss order could be placed below this zone.
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631.12
3 important support areas can be observed.
- A support zone ranging from 751.96 to 759.73. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
- Support @694.70 from a trend line in the daily time frame.
- A support zone ranging from 637.49 to 654.17. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
We found 1 important resistance area.
- A resistance zone ranging from 774.21 to 775.01. This zone is formed by a combination of multiple trend lines in multiple time frames.
The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.
| Indicator | Value | Signal | Comment |
|---|---|---|---|
| ChartMill Long Term Trend Indicator | UP | POSITIVE | The long term trend for CAT is up. |
| ChartMill Short Term Trend Indicator | UP | POSITIVE | The short term trend for CAT is up. |
| ChartMill Relative Strength | 95.32 | POSITIVE | CAT has a high relative strength, it outperformed 95.32% off all stocks on the market. |
| Simple Moving Average/SMA (20) | UP | POSITIVE | The current price of CAT is above the rising SMA(20). |
| Simple Moving Average/SMA (50) | UP | POSITIVE | The current price of CAT is above the rising SMA(50). |
| Simple Moving Average/SMA (200) | UP | POSITIVE | The current price of CAT is above the rising SMA(200). |
| Relative Strength Index/RSI (14) | 66.9 | NEUTRAL | The RSI value for CAT is a neutral value. |
| Moving Average Convergence Divergence/MACD (12, 26, 9) | 1.83 | POSITIVE | The MACD value suggests CAT has a positive trend, although the MACD value is declining. |
| Stochastics (14,3) | 76.86 | NEUTRAL | The Stochastics value for CAT is a neutral value. |
| Average True Range in percent/ATR (20) | 3.55 | MEDIUM VOLATILITY | The ATR as a percentage value for CAT suggests some volalility. |
| Average Directional Index/ADX (14) | 36.75 | POSITIVE | The high ADX value value for CAT suggests a strong trend. |
Important!: this is just an example which is fully automatically generated based on the analysis above and should in no way be interpreted as a suggestion. Always make your own analysis and determine your own entry and exit points.
| ENTRY | EXIT | DISTANCE | CAPITAL |
|---|---|---|---|
| 775.02 | 751.95 | 23.07 (2.98%) | 25.00% |
| An entry @775.02. This is a Buy Stop order right above the resistance zone. | An exit @751.95. This is a Stop Loss order right below the support zone. | The worst case loss on the trade is limited to 23.07 points, which is 2.98%. | For a 0.74% total portfolio risk, you can invest 25.00% of your capital in this trade. |
- The distance between exit and entry is rather small compared to the average daily movement of CAT. Please evaluate whether better entry and exit points can be found.
- The generated setup is based on the nearest support and resistance areas. If you are looking for a more long term trade, probably a wider stop is advisable.
- This trade setup was generated fully automatically and should not be interpreted as trading advice. Always check the related news for upcoming earnings or other events. Make your own analysis and trade at your own responsibility.
759.74
-0.79 (-0.1%)
CATERPILLAR INC / CAT FAQ
What is the ChartMill technical rating of CATERPILLAR INC (CAT) stock?
ChartMill assigns a technical rating of 10 / 10 to CAT.
What is the current trend direction of CATERPILLAR INC (CAT) stock?
The current trend direction for CATERPILLAR INC (CAT) is Bullish.
What is the RSI signal for CAT stock?
CATERPILLAR INC (CAT) has an RSI value of 66.9047. This indicates that the stock is currently neutral.
Can you provide the MACD signal for CATERPILLAR INC?
The MACD indicator for CATERPILLAR INC (CAT) has a value of 1.83193, indicating a bullish trend.
What is the support and resistance level for CAT stock?
CATERPILLAR INC (CAT) has a support level at 759.73 and a resistance level at 774.21. Check the full technical report for our detailed analysis of CAT support and resistance levels.