CAT $84.60: Completes a 3-month double bottom

CAT broke through the 85.81 range high (February 18, 2015) to complete a 3-month double bottom at 78.81/78.25 before consolidating. The bullish indicators suggest there is scope for further upside. A swing low above the 83.09/81.54 support zone remains favored ahead of further strength through 87.50 (April 23, 2015 high) to open 89.28 (January 8, 21015 lower high). Above there would expose the 94.66 lower high (December 26, 2014) near the 200 day moving average. However, a break below the 81.54 area would prolong the consolidation and retest the 78.76 support (March 27, 2015 low).
Outlook:
Short term: bullish
Long term: neutral