Current trend

The quotes of Caterpillar Inc., a global manufacturer of construction and mining equipment, have been trading in the lateral range of 289.06–265.62 (Murrey level [5/8]–[2/8]) for more than two months and cannot leave it yet.

Currently, the price is tending to the lower birder of the range and may soon begin to break it: if the price is consolidated below 265.62, a decline to the levels of 250.00 (Murrey level [0/8]) and 242.19 (Murrey level [-1/8]) would be possible. The key for the "bulls" remains the mark of 289.06 (Murrey level [5/8]), the breakout of which can lead to a rise of quotes to the levels of 296.88 (Murrey level [6/8]) and 304.60 (Murrey level [7/8]).

Technical indicators allow for the continuation of the decline and the formation of a new downtrend: Bollinger Bands and Stochastic are reversing down, MACD has moved into the negative zone.

Support and resistance

Resistance levels: 289.06, 296.88, 304.60.

Support levels: 265.62, 250.00, 242.19.

Trading tips

Short positions may be opened below the level of 265.62 with targets at 250.00, 242.19 and stop-loss at 274.40. Implementation period: 5-7 days.

Long positions can be above the mark of 289.06 with targets of 296.88, 304.60 and stop loss at 283.50.