I am personally bearish on CAT but I believe this provides a great opportunity to see if a great dip is available when the opportunity strikes. I currently see the 170 VWAP support as a great target, but there also lies a Fibonacci support that rest at 185.87 so keep an eye out for that zone. I will now begin and demonstrate why I'm bearish on this stock.
ANALYSIS
I am taking a look at the weekly time frame as I believe that greater demonstrates the degree to bearishness this stock is in, although I will update this analysis with a chart of the daily which also indicates bearishness. The first sign of bearishness was the rejection of VWAP resistance at 213. After that we have seen the green EMA cross the red RSI towards the downside(sell signal). Not only have we gotten that conventional sell signal but the Blue LSMA has been crossed by the Green EMA indicating more downwards pressure. If you are long then you don't want that Blue LSMA to cross below that 20 level or else we are going to see even greater expansion to the downside.
Targets
- 1st 186
- 2nd 170
ANALYSIS
I am taking a look at the weekly time frame as I believe that greater demonstrates the degree to bearishness this stock is in, although I will update this analysis with a chart of the daily which also indicates bearishness. The first sign of bearishness was the rejection of VWAP resistance at 213. After that we have seen the green EMA cross the red RSI towards the downside(sell signal). Not only have we gotten that conventional sell signal but the Blue LSMA has been crossed by the Green EMA indicating more downwards pressure. If you are long then you don't want that Blue LSMA to cross below that 20 level or else we are going to see even greater expansion to the downside.
Targets
- 1st 186
- 2nd 170
Comment:
Daily Suggest even greater downwards pressure as seen by the crossings of both the Blue LSMA and the Red RSI by the Green ema