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Caterpillar Inc. (NYSE:CAT) stock news and links


Caterpillar’s chart: poised on the brink

Afraid to Trade blog profiled Caterpillar’s chart action yesterday.

In short, from a technical perspective on the daily chart, Caterpillar is finely balanced beween doom and hope at the moment, and it might be best to wait until a clear victor (buyers or sellers) emerges before entering a new position here. Although, this would be a decent spot to enter if you are a Caterpillar bull, because you could place your stop just beneath this level and would stand to make a good profit should price find support here.

Check out the link to see the whole thing .. the blog targets day traders, who tend to follow the charts more closely than folks who buy on fundamentals.

One observation: Cat is at the bottom of its trading range while the rest of the Dow and S&P500 are roughly near the middle. It stands to reason the broader markets will test the bottom of their range over the next few weeks as more ugly earnings reports unfold. That could spell downward gravity for everybody.

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Tom Mangan posted at 10:17 am January 27th, 2009 |

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