Bearish Continuation Wedge (How Reliable It's)

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$CAT was low risk short-candidate as it approached 38.2% FIB. Posting earning momentum faded away as price approached that resistance, and if price reverse from here it may suggest a higher probability that we may see a new low or new lower low that will be hard to believe after strong earning and guiding higher. Not many analyst increased their outlook or EPS             last few weeks after earning. From technical point of view, price seems to roll back to recent gains. A Continuation Wedge ( Bearish ) represents a temporary interruption to a downtrend, taking the shape of two converging trendlines both slanted upward against the trend. During this time the bulls attempt to win over the bears, but in the end the bears triumph as the break below the lower trendline signals a continuation of the prior downtrend. If you decide to take short position, make your stop loss at recent swing high at and around 103 area. If you want a real time alert try us www.2waytrading.com
timwest PRO
2 years ago
It looks like I have treaded on your similar forecast. Nice work. ...
Caterpillar Inc -CAT -Daily -Retest of Distribution Top - Short
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