Hello guys! Here’s my stock pick of the day, Caterpillar Inc. or CAT as listed in the New York Stock Exchange. For those who do not know, they are the world’s biggest manufacturer of construction and mining equipment such as most of the bulldozers you see around. Anyway, last September 8, I posted on this and mentioned that the Caterpillar stocks were preparing to climb as there is a bullish symmetrical triangle pattern forming on the stock chart as for my technical analysis (please see it here). What looked to be a symmetrical triangle formation really was one and was indeed bullish as the stocks broke out on the upside last week.
Right now, the stocks are hanging around the $75.87 resistance and if it continues to go up, it could encounter some selling pressure at the next resistance at the $80.00 psychological level. If it successfully passes above the $80.00 price mark, the next resistance could be $85.96. On the flip side, the triangle’s resistance could act as the immediate support. If the stocks further drop below that level, the next marker could be the triangle’s support and after that could be the 18-month uptrend.