CAT appears to be starting to dig

NYSE:CAT   Caterpillar, Inc.
CAT as a blue-chip industrial is not a fast mover- it is best suited for options traders or investors.

On the 4 H chart, CAT rose from the lows on a trend up from last November through this

February. It then descended in a retracement about a 50% Fibonacci extent to its present value.

It is now at the POC line of the volume profile for support and is near to the mean anchored

VWAP line. RSI is above 50. I see this as an excellent long trade setup given that other sectors

may be cooling off there may be plenty of money looking for a new home. The volume indicator

shows steadily rising volumes. The stop loss is the line of one standard deviation below the

the mean VWAP while the target is the even dollar immediately below the ceiling of the

supply / resistance zone of the Luxalgo indicator. This seems to be a reasonable position to

diversify from techonolgy which seems to be a bit overextended.

Trade active:
Volume indicator shows a relative volume of about 2.75X the running meanwhile
it shows trading dollars at $30 M per day for a market cap of about $150B
yielding a daily share turnover of about 0.02% per day-. This shows that despite rising volume there are a lot of long-term holders of CAT either investors or options traders with long expiration contracts. I am now one of the latter.
Trade active:
CAT beat earnings by 20% as equipment purchases got ready for the construction summer season ( NAIL is moving well).

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