CAT Long-term outlook
CAT share prices move phenomenally without any stop to the sky. The share prices print a new record high in November trading month. For November, the share prices up from $135.67 opening level to close at $141.15. The upward movement continues again in December and print record high at $145.19.
Repeating previous month warning, “There is no reason to short this company share prices yet.” With tax-bill approves by the senate, and president Trump commitment to boost infrastructure, CAT sits in a comfortable position. The only things which could overturn the situation are shakeout on President Trump position base on Russia probe or global politics.
Click here To look at October CAT analysis
New Month
Monthly chart
CAT extremely bullish on the monthly chart and show no weakness yet. The share prices print a record high in November, and it continues in December. Traders who are looking for the short position could take a look at 38.2% extension located at $153.96.
On the other hand, bull traders suggested waiting until the share prices reach $117.3 – $120.00 area.
Weekly chart
The outlook on weekly chart bullish for CAT. The share prices move out its blue channel and currently move inside the red channel. The channel inclination looks extreme and might break lower anytime.
Daily chart
CAT daily chart also in the strong bullish trend without any lower low printed on the chart. The nearest support level to watch is $140.00 handle. On the upside, it looks like $150.00 is a major psychological number to watch.
Trade plan
A long position could be taken near $117.3 – $120.00 support area after re-test
A short position could be considered near the 38.2% Fibonacci extension located at $153.96. Traders could look around $150.00 – $153.96.