CATERPILLAR INC. - CAT
Monthly chart shows last move up into $87 area high was made with divergence. Also, buyers were met with sellers. Thus far, the price action for the month of October 2007 has all but erased the gains since May 2007. Backend resistance held as well.
Weekly chart shows: 1) head and shoulders reversal pattern 2) backend resistance holding 3) reverse cradle pattern showing change in investor sentiment from up to down 4) a variation of the evening star candle reversal pattern.
Daily chart shows another bearish gartley butterfly pattern into the .786 fib resistance area. Last move down looks impulsive rather than corrective. Friday saw investors/trading doing a complete 360 degree turn in sentiment - creating a kicker signal pattern. However, price found early support off the 200sma. Look for possible consolidation before continuation lower.
Sunday, October 21, 2007
CAT Analysis for 10.21.2007
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