CAT Long-term outlook

The company hit by tax fraud issue as Federal agents raided the headquarters on 2nd March. CAT denies the allegation, but share price hit by the publications and investors waited for further clarification on the news. Despite the rosy outlook in the future, CAT needs to clear out the issue first before it can enjoy infrastructure reform in President Trump economic era.

Analyst, on the other hand, think the institutional investor will shrug the issue surrounded CAT and looking for opportunity buying the shares at a cheaper price.

Click here To look at February CAT analysis

New Month

Monthly chart

Indecisiveness continues shown by the shares of CAT on the monthly chart, the price fall in March and looks will test the bottom of the channel. If the price break below the channel, it will continue lower toward the $80 handle. A break above $100 is important for CAT to resume its bullish trend.

Weekly chart

Progress on the weekly chart is encouraging as the price continue to stay inside the blue bullish channel. This week, the price look to form a bullish pin bar pattern which needs close confirmation at the end of the week. If the price manages to close as pin bar and surpass it next week, then traders could expect $100 test.

Daily chart

The bearish movement initiated early March after fraud allegation put CAT down to test it channel. Fortunately, the channel still holds its ground. If the price break lower below the channel, it will continue downward to test the daily SMA 200. On, the upside, the price will face daily SMA 50.

Trade plan

A long position needs to wait for stronger confirmation of bounce from the bottom of the channel with $100 as the target.

Short position bests taken near the psychological level $100