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Actionable news in CAT: CATERPILLAR Inc,

Caterpillar Is Digging Itself Out of a Hole


The last time the technical indicators on the Caterpillar (CAT - Get Report) chart were similarly aligned, the stock saw a 10% move higher. A recent pattern breakout suggests another strong move is underway.

A cup and handle pattern began forming on the daily chart last month after the stock retested the 50% Fibonacci level of its 2009 low and 2014 high. Rim line resistance is positioned in the $71 area. Price action over the last week has been outside an intermediate-term downtrend line and above the declining 50-day moving average. A breakout from this pattern projects a target price back up to the 200-day moving average, and the potential move is being reinforced by a...