March 25, 2012

Caterpillar Chart Analysis

  • First chart shows a consolidation pattern which will resolve in favor of bulls if price stays above 105 levels.
  • 38.2% Fib level is acting as support for now. Closing below this level will make the stock weaker. Important support level is between 104 - 106. If week starts to trade below this level we may see a sell signal in Weekly MACD.
  • For strength price need to trade above 23.6% Fib level.