Caterpillar: expected drops towards the most significant support levels

Caterpillar main trend is bullish on the daily chart. The positive values of many leading oscillators still confirm the upward trend.

On the 10/02/2016 Caterpillar close was at 62.14 (-2.80%). Marked a series of 3 consecutive higher lows. New bearish technical picture drawn on daily chart (high2 > high1, high1 > high, low2 > low1, low1 > low, close2 > close1, close1 > close). Marked a third consecutive negative trading session. Anyway the main trend is still bullish on the daily chart and the positive values of many leading oscillators still confirm the upward trend, so we suggest to monitore today closing.
CATERPILLAR INC.

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Simple Moving Average (SMA)
The price is above the 14 days moving average (SMA value is 62.08). The short term view is therefore bullish, however for today trading session we can’t exclude retracements towards the most significant support levels.
Volumes
Daily chart shows volume is higher than the previous day. This could be a sign of a significant move to come.


Support and Resistance levels
7, 15 and 30 trading days Performance. Support, Resistance and Pivot Point levels. Last updated closing price: 10/02/2016.

Performance: 7 trading days= +2.42% – 15 trading days= +4.10% – 30 trading days= -10.19%

Resistance levels: R1= 63.68 – R2= 65.22 – R3= 67.60
Pivot Point: 62.84
Support levels: S1= 61.30 – S2= 60.46 – S3= 58.0


DAILY TRADING SIGNALS

Buying opportunity above 62.52, targets minor resistance at 63.29 and perhaps as far as strong resistance at 63.83, where sellers could regain control. Above that level it could trigger an acceleration to the upside with the next target at 65.14.

Selling opportunity below 61.98, targets minor support at 61.22 and perhaps as far as strong support at 60.67, where buyers could get back into the market. Below that level we could expect a bearish downward movement with the next target at 59.34.