Tuesday, we took a look at the setup in Shutterstock (SSTK) and started watching for a buy signal.
Today, we’re going to look at Caterpillar, Inc. (CAT).
From its website:
Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. We are a leader and proudly have the largest global presence in the industries we serve.
CAT has been in a steady uptrend for the past few months, and has held support numerous times when tested. This is a sign of a strong trend being in place.
Let’s take a look at the daily chart below:
CAT has held its current up-trendline four times I’ve previously said in regard to trendlines, a minimum of three tests is required in order for a trendline to be considered valid. The more tests, the stronger the trendline.
The solid trendline and the strong uptrend puts us on watch for a PowerTrend buy signal starting now.
See ya tomorrow!
Analyst, Chart of the Day