Caterpillar (CAT) - My Stocks Investing

Caterpillar (CAT): Trend Reversal?

Post author:Marubozu
Post published:April 18, 2015

Caterpillar is showing Trend Reversal Chart patterns currently, ie breakout from Falling Wedge and forming a Double Bottoms. Watch for a breakout at the neckline resistance at $85.

Original post by Marubozu My Stocks Investing Journey.

Caterpillar (CAT) Trade Idea

Post author:Marubozu
Post published:August 17, 2013

Unable to enter any trade base on last trade idea on Caterpillar as CAT did not reach my target entry price. Fortunately the chart presented me another entry level few days ago. This time is a bearish entry when CAT was rejected at 200D SMA resistance and also the Symmetrical Triangle resistance. In addition, the candlestick patterns were shouting LOUD and CLEAR at me with Shooting Star and Bearish Engulfing patterns.

Trading Strategy: Short Call Spread Sept 13 85/90

Direction: Bearish (Rejected at Symmetrical Triangle Resistance and 200D SMA resistance)
STO CAT Sept 13 85 Call
BTO CAT Sept 13 90 Call
If the resistance (about $87) is broken, close both legs to cut loss.
Entry Price: $86.22
Breakeven Price: $87.01
Max Profit: $603
Max Loss: $897
Reward vs Risk: 0.67
Probability Price Below Breakeven: 65%
Exit Target: CAT price near to the Symmetrical Triangle support about $81-$82 region

Chart from thinkorswim, get FREE chart here.

Caterpillar (CAT) Trade Idea

Post author:Marubozu
Post published:July 27, 2013

Target Entry: $80 (Reliable support for past 8 occasions)

Trading Strategy: Short Put Spread 77.5/80

STO CAT Sept 13 80 Put
BTO CAT Sept 13 77.5 Put
If break support, BTC CAT Sept 13 80 Put to repair (1 month before expiry), else close both positions.

CAT Chart

CAT Fundamental