Current trend

Shares of Caterpillar Inc., a manufacturer of construction and mining equipment, are actively growing for the fifth month in a row: during this time, the price reversed around the level of 234.38 (Murrey level [-1/8]), moved into the positive part of the Murrey trading range and is now testing the 359.38 mark (Murrey level [7/8]), consolidating above which will allow continue the upward movement towards the targets of 375.00 (Murrey level [8/8]), 390.62 (Murrey level [ 1/8]), and 406.25 (Murrey level [ 2/8]).

The key for the "bears" is the reversal level of 343.75 (Murrey level [6/8]), supported by the central line of Bollinger Bands, with a breakdown of which the decline can resume to the central mark of the Murrey trading range of 312.50 (Murrey level [4/8]), but so far this scenario seems less likely.

Technical indicators confirm the continuation of the uptrend: Bollinger Bands are directed upwards, MACD is stable in the positive zone, and Stochastic has left the overbought zone, which does not exclude a corrective price decline, but its potential is seen to be limited.

Support and resistance

Resistance levels: 359.38, 375.00, 390.62, 406.25.

Support levels: 343.75, 328.12, 312.50.

Trading tips

Long positions can be opened above the 359.38 mark or after a price reversal around343.75 with targets of 375.00, 390.62, 406.25 and stop-losses of 349.00 and 333.00, respectively. Implementation period: 5–7 days.