$CAT Oversold Catching Support$CAT Caterpillar looking oversold on the daily chart - catching support at gapfill around $132.50 today, already bounced nearly $3 intraday. Expecting continuation to at least $140 in the very near term, possibly further. Breaking through the 200d ema will be crucial for additional gains, may see some resistance there.
Note this stock has been one of the equities affected by trade war concerns, beware it could make a significant move in either direction with further trade war developments and/or POTUS tweets.
Note: Observation/opinion, not investment advice.
CAT trade ideas
WATCH to LONG soon $CAT$CAT @breakingoptions , keep this one on the radar, RSI has not been this oversold since 2014, This is all trade war noise. Stock is below every moving avg. I have a string support / gap up line at 132.01. Fib 38.2% @ 145.12, once trade war news is over this will be your go to stock. Aug 145 calls looking like a decent play
Watch for the live CAT bounceThis is a short term trade.
to specify, short term meaning no more than 2 hour trade(Perhaps max) I'm pretty sure we break above the close Tuesdays 152.95. The quicker you are in the morning, the better. Hopefully we get a quick bounce off of 152.70s to launch into 153.50s.
And the final reminder, this trade is no longer than 2 hours. At the very least, trail a stop loss just in case it runs beyond 153.70s.
Lets see how I do on the CAT call(s)
CAT lesson - Open was Bullish & End was BearishYou need to understand that price action always comes back to 20 moving average or middle of Bollinger Indicator. When anything is overstretched, like a rubber band and let go, it will come back to normal or back in balance. No price action can continue to either go up and/or down for long, that is why oversold and/or overbought areas are very important, in your trading.
*IF you were all in buying CAT at beginning of today and did not understand this LESSON, you would have took a huge loss of $15.00 per share. Be flexible and understand price action and trust both your EYES and charts, they will tell you were they are going in the future.