More downside for CAT?
From our own technical chart analysis, Caterpillar (CAT) started showing early weakness on Monday, January 27th 2025, gapping down and falling back into a downward sloping price channel.
While we also conduct in-depth technical analysis (see chart below), our TST Trender algorithm indicator offers a convenient alternative.
You can easily load the software onto your trading platform, and it will identify key technical inflection points, providing you with buy/sell ideas, potential price targets, and suggested stops—saving you from the extensive chart analysis!
On Monday, February 3rd, 2025 the TST Trender Swing Trading Indicator triggered a “Sell” signal idea, marked by a red down arrow:
Here, the TST Trender signal (red down arrow) was triggered and can be observed in the technical chart with:
- Price gapping down
- Price dropping back below the previous April 2024 highs
- Price again breaching a long-term/ former 50% Fibonacci retracement level
- A downward-sloping moving average crossover, and
- Accelerating weakness in price momentum
…all of which are bearish characteristics!
From here, the TST indicator shows an initial potential swing trading target move to around $354 below.
If the price continues to decline from here, showing increasing weakness, the next potential price target might be around $345.
This level corresponds to the technical areas around the downward sloping lower channel support line and a 78.6% Fibonacci price retracement level.
We did a lot of technical analysis on stocks like CAT, but as I mentioned already, there’s an easier way for most traders to catch shifts like these: the TST Trender indicator.
Happy Trading 🙂
