CAT Elliott Wave Analysis Trading Lounge

Caterpillar Inc., (CAT) Daily Chart

CAT Elliott Wave Technical Analysis

FUNCTION: Counter Trend

MODE: Corrective

STRUCTURE: Complex

POSITION: Wave {iv} of 3.

DIRECTION: Bottom in {iv}.

DETAILS: We could have a wave {iv} in place which would suggest the trend is strong. If not we could have completed wave (a) of {iv}.

Caterpillar Inc., (CAT) 1H Chart

CAT Elliott Wave Technical Analysis

FUNCTION: Counter Trend

MODE: Corrective

STRUCTURE: Complex

POSITION: Wave {i} of 5.

DIRECTION: Bottom in wave {iv}.

DETAILS: Here we can see a three wave move with a nice subdivision in wave (c). Given the fact wave {iv} was relatively short compared to wave (iv) of one lesser degree, we could still be in wave (a) of {iv}. Upside target at equality of 3 vs. 1 stands at 450$.

This analysis focuses on the current trend structure of Caterpillar Inc., (CAT) utilizing the Elliott Wave Theory on both the daily and 1-hour charts. Below is a breakdown of the stock's position and potential future movements.

* CAT Elliott Wave Technical Analysis – Daily Chart*

Caterpillar Inc. (CAT) is showing signs of a possible bottom formation in wave {iv}, indicating that the overall trend remains strong. If this wave {iv} is complete, we could soon resume the uptrend into wave 5. However, there’s also a possibility that we’ve only finished wave (a) of {iv}, signaling a deeper correction before the uptrend resumes. A decisive move will help clarify the path forward.

* CAT Elliott Wave Technical Analysis – 1H Chart*

On the 1H chart, Caterpillar Inc. (CAT) shows a well-defined three-wave correction with a clear subdivision in wave (c). While it seems like wave {iv} was shorter than wave (iv) of one lesser degree, we could still be in the early stages of wave (a) of {iv}. If wave {iv} holds, the upside target for wave 5 stands at 450$, based on the equality of wave 3 vs. wave 1 projections.

Technical Analyst : Alessio Barretta

More By This Author:

Elliott Wave Technical Analysis: Polkadot Crypto Price News For Wednesday, Jan 15
Soybean Commodity Elliott Wave Technical Analysis - Tuesday, January 14
Eicher Motors Indian Stocks Elliott Wave Technical Analysis - Tuesday, January 14