Current trend

Shares of Caterpillar Inc., a manufacturer of construction and mining equipment, are actively growing for the fourth week in a row within the medium-term uptrend: during this time, the price reversed from the 328.12 mark (Murrey level [5/8]), went beyond the main Murrey trading range, breaking through its upper limit, and is currently testing the level of 390.62 (Murrey level [ 1/8]) in the upper reversal zone. After consolidation above it, the upward dynamics will strengthen towards the targets of 406.25 (Murrey level [ 2/8]) and 421.88 (Murrey level [ 2/8], W1). The key for the "bears" is the level of 375.00 (Murrey level [8/8]), with a repeated breakdown of which the decline will continue to the levels of 359.38 (Murrey level [7/8], the central line of Bollinger Bands), 343.75 (Murrey level [6/8]).

Technical indicators confirm the continuation of the uptrend: Bollinger Bands are reversing up, MACD is increasing in the positive zone, and Stochastic is leaving the overbought zone, which does not exclude a corrective decline, but its potential is seen to be limited.

Support and resistance

Resistance levels: 390.62, 406.25, 421.88.

Support levels: 375.00, 359.38, 343.75.

Trading tips

Long positions can be opened above the 390.62 mark with targets of 406.25, 421.88 and a stop-loss around 380.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 375.00 with targets of 359.38, 343.75 and a stop-loss around 387.50.