Current trend

Shares of Caterpillar Inc., a manufacturer of construction and mining equipment, are recovering lost ground. The quotes have reversed from the lower border of the main Murrey trading range of 312.50 (Murrey level [0/8]) and are now close to its central mark of 343.75 (Murrey level [4/8]), supported by the middle line of Bollinger Bands. Consolidation above will allow the asset to reach the area of ​​359.38 (Murrey level [6/8]) and 375.00 (Murrey level [8/8]). In case of consolidation below 320.31 (Murrey level [1/8]), a decline to the area of ​​304.69 (Murrey level [–1/8]) and 296.89 (Murrey level [–2/8]) is expected.

Technical indicators do not give a single signal: Bollinger Bands are reversing horizontally, Stochastic is directed upward, and the MACD histogram is stable in the negative zone.

Support and resistance

Resistance levels: 343.75, 359.38, 375.00.

Support levels: 320.31, 304.69, 296.89.

Trading tips

Long positions may be opened above 343.75, with the targets at 359.38, 375.00 and stop loss 333.00. Implementation period: 5–7 days.

Short positions may be opened below 320.31, with the targets of 304.69, 296.89 and stop loss of 330.00.