CAT 5-30% gains possible this week

2020년 4월 26일

CAT is showing bullish divergences into earnings on Tuesday.
Price line is tracing a first "higher low" and the bullish follow through is shown in all my key indicators.
i. MACD is diverging on both the histogram and lines
ii. Stochastic shows momentum has bottomed and turning up with plenty of room for a price rise
iii. Elder's Force Index is rising with a clear longer-term divergence and still room for an upward move.
iv. Elder's Impulse has turn green, permitting long positions.

Targets:
5% gain at $120 as it reaches the recent gap down,
10% gain at $126 as it closes the gap-down and touches the 200day moving av.
30% gain at $148 as the stock retests the highs

Stop:
Just below Thursday and Friday's low and the 13day EMA. If it breaks these levels this trade idea will break down over the shorter term.

If you're feeling brave enter ahead of earnings on Tuesday or wait until after. There's plenty of upside here if earnings beat.

2020년 4월 30일

노트

Against the downgrade on Monday and a miss on Tuesday's financial's, CAT did manage the bottom end of technical expectations with a +5% gain from Friday's close and a 7.5% gain from Monday's open into the close yesterday. Reality has caught up with this one on Thursday though.