Current trend

Shares of Caterpillar Inc., a global manufacturer of construction and mining equipment, have been growing for the second month in a row.

During this time, the price has broken into the positive part of the main trading range and is now trying to consolidate above its upper border around 250.00 (Murrey level [8/8]), after which the positive dynamics will continue into the reversal zone to 257.81 (Murrey level [ 1/ 8]) and 265.62 (Murrey level [ 2/8]). The key “bearish” level is 242.19 (Murrey level [7/8]), supported by the middle line of Bollinger bands, in case of breakdown of which the decline can continue to the level 324.38 (Murrey level [6/8]).

Technical indicators are signaling the continuation of the upward trend in the market: Bollinger bands and Stochastic are directed upwards, while the MACD histogram is increasing in the positive zone.

Support and resistance

Resistance levels: 250.00, 257.81, 265.62.

Support levels: 242.19, 234.38, 218.75.

Trading tips

Long positions may be opened from 252.70 with the targets at 257.81, 265.62 and stop loss around 249.80. Implementation period: 5–7 days.

Short positions may be opened below 242.19 with the target at 234.38 and stop loss around 247.00.