Caterpillar: new bearish technical picture drawn on daily chart

New bearish technical picture drawn on daily chart (open > high1, close < close1) which, however, needs to be confirmed.

Caterpillar stock trading session of the 05/01/2016 ends at 67.28 (-1.04%). Yesterday trading session was characterized by a gap up at the open and a selling pressure at close. So a new bearish technical picture has been drawn on daily chart (open > high1, close < close1) which, however, needs to be confirmed. For intraday trading session the technical view is negative and leaves assume the down-trend continuation. However, we can’t exclude rebounds towards the most significant resistance levels. The major oscillators confirm the downward trend.

CATERPILLAR INC. Bearish

View the interactive chart on ProRealTime.com

Simple Moving Average (SMA)
Strong bearish signal: the price crosses below the 14-day moving average (SMA value is 67.28). Today trading session forecast is for further prices dropping towards the most significant support levels. However, the sell signal should be confirmed with increasing volume.
Volumes
Daily chart shows volume is lower 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: 05/01/2016.

Performance: 7 trading days= -3.03% – 15 trading days= +1.75% – 30 trading days= -5.43%

Resistance levels: R1= 68.34 – R2= 69.40 – R3= 71.42
Pivot Point: 67.38
Support levels: S1= 66.32 – S2= 65.36 – S3= 63.34


DAILY TRADING SIGNALS

Buying opportunity above 67.62 targets minor resistance at 68.43 and perhaps as far as strong resistance at 69.01, where sellers could regain control. Above that level it could trigger an acceleration to the upside with the next target at 70.49.

Selling opportunity below 67.10 targets minor support at 66.30 and perhaps as far as strong support at 65.73, where buyers could get back into the market. Below that level we could expect a bearish downward movement with the next target at 64.25.