Caterpillar Inc. (NYSE:CAT) not safe havens from the tech-led sell-off
Caterpillar stock lost 3.8% to 143.72. The heavy machinery maker is testing its 200-day average line after tumbling below its 50-day line on Wednesday. Caterpillar is still ranked No. 1 in IBD’s Machinery-Construction/Mining group.
Price earnings ratio (P/E) ratio of Caterpillar Inc. (CAT) is 16.38. CAT has price to earnings growth (PEG) ratio of 0.64 and Forward P/E of 11.60.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 147.30.
The projected upper bound is: 150.56.
The projected lower bound is: 136.87.
The projected closing price is: 143.72.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 8.4796. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.00. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 4 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -259.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
CATERPILLAR INC closed down -5.740 at 143.720. Volume was 79% above average (neutral) and Bollinger Bands were 7% wider than normal.
Open High Low Close Volume___
148.700 149.170 143.720 143.720 1,801,476
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 152.69 144.30 149.79
Volatility: 34 30 34
Volume: 1,031,567 990,747 1,134,874
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
CATERPILLAR INC is currently 4.1% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of CAT.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CAT.N and have had this outlook for the last 27 periods.