Caterpillar Stock Could Push Higher

Caterpillar Inc. (CAT) is looking to break up to continue its bull trend. Ichimoku Cloud analysis indicates Caterpillar stock could push higher in the coming weeks. 

Caterpillar Weekly Ichimoku Cloud Chart

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CAT had a strong vertical move up from June 2020 to June 2021. The price climbed above the Ichimoku Cloud on the weekly chart and the uptrend pulled price away from the equilibrium of point of the Ichimoku Cloud.  

In June of 2021, the price began a retracement on the weekly chart and formed a horizontal bull flag. The retracement did not pull price below the Ichimoku Cloud and CAT maintained its uptrend.  

The Ichimoku Cloud noted on the week of March 14th, that CAT was preparing for another bull move. CAT has begun working its way upwards towards the purple target zone. Should the price break above the top of the Wave 1 on this weekly chart, look for CAT to move to the black line at the beginning of the target zone.


Caterpillar Daily Ichimoku Cloud Chart 

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The daily chart shows CAT has moved above the Ichimoku Cloud and formed an uptrend. The Ichimoku Cloud indicates the momentum is up and price is looking to climb higher. The daily chart shows a vertical move from Wave 0 to Wave 1, which shifted to a textbook horizontal retracement.  

CAT price on the daily chart popped above the Wave 1 swing high, consolidated, and now has closed above the Wave 1 pivot. If price moves above the Wave 3 high, it’s more than likely going to head up to the daily target zone.  

The daily chart offers an early opportunity entry with a relatively small risk for the weekly move.  


Caterpillar 60-Minute Ichimoku Cloud Chart 

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The hourly chart again shows CAT has moved above the Ichimoku Cloud and formed an uptrend. Price hit the extended targets on the hourly chart, and pulled away from the equilibrium point of the Ichimoku Cloud. CAT has encountered resistance and likely will consolidate forming a bull flag as it waits for the Ichimoku Cloud to catch up later this week. 

CAT is set up to take out the Wave 3 high on this 60-minute chart and then move towards the daily targets and possibly continue on to the weekly targets. 

Video Length: 00:06:04

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