Caterpillar Inc., H4

On the four-hour chart, shares of Caterpillar Inc., a manufacturer of construction and mining equipment, are moving within a downward correction channel, trading at 327.47. The quotes reversed at the support level of 315.37, forming a Long-Legged Doji pattern, which signals uncertainty in the market. At 325.47, a Hammer and Dragonfly Doji appeared, reflecting the likelihood of an upward reversal and a return to the resistance level of 335.57. After breaking through it, the price may reach the region of 351.42–382.49. After a breakdown of the key support level of 315.37, short positions with the targets of 297.65–257.56 are relevant.

Caterpillar Inc., D1

A large price pattern Bull Flag is forming on the daily chart, which the price should exit upwards. In addition, around ​​315.37–325.47, candlestick analysis formations Morning Star Doji and Hammer are forming, indicating the strength of buyers. Most likely, soon, the quotes will reach the upper border of the Bull Flag pattern, and after overcoming the diagonal and horizontal resistance lines at 335.57 – the area of ​​351.42–382.49.

Support and resistance

Support levels: 315.37, 297.65, 276.21, 257.56.

Resistance levels: 335.57, 351.42, 368.20, 382.49.

Trading tips

Long positions may be opened above 335.57, with the targets of 351.42, 368.20, and 382.49. Stop loss — 325.47. Implementation period: 7 days or more.

Short positions may be opened below 315.37, with the targets of 297.65, 276.21, and 257.56. Stop loss — 325.47.