NYSE:CAT CATERPILLAR INC DEL
CAT reached new annual highs last week but failed to break above an important technical level at $83.90 (50% Fib level in chart). A negative divergence has taken shape in the daily as prices retreat from a resistance tested on 17 August. So long as prices remain below $85.30 (current projected level), we may see CAT correct down towards $80.90 by next week. $77.40/$78.00 is also a possible target if such a correction takes place next month.