CAT: Range Bound Swing Trading

CAT developed one of the entry signals I teach this week. The stock rebounded from testing the lows of the trading range. Hybrid indicators suggest large-lot buying is triggering in the lows of the range.

Point gain potential may be limited by the sideways trading range developing, but swing trading can be done within the range if you can catch the entry early in the upswing from the lows and plan to exit near the highs.

This trading range will need to compress near the highs to sustain a breakout to the upside.