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Caterpillar Inc., (CAT) Daily Chart

CAT Elliott Wave Technical Analysis

FUNCTION: Trend

MODE: Impulsive

STRUCTURE: Motive

POSITION: Wave {iii}.

DIRECTION: Upside in wave (v) of {iii}.

DETAILS: Looking for completion of wave (v), which could also turn out to be wave i of (v), suggesting more upside than expected could come.

Caterpillar Inc., (CAT) 1H Chart

CAT Elliott Wave Technical Analysis

FUNCTION: Trend

MODE: Impulsive

STRUCTURE: Motive

POSITION: Wave iv.

DIRECTION: Sideways in iv.

DETAILS: Here we seem to be looking at a sideways wave iv that is nicely alternating with its corresponding wave ii, slowly approaching the parallel trend channel where we could expect support from.

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*

In the daily chart, CAT is currently in wave {iii}, with a focus on completing wave (v). This wave (v) could also signify the start of wave (i) of (v), indicating that further upside potential is likely beyond current expectations. Traders should remain alert for upward momentum as this wave unfolds.

* CAT Elliott Wave Technical Analysis – 1H Chart*

The 1-hour chart reveals a sideways wave iv that is showing a corrective pattern, nicely alternating with the previous wave ii. As CAT approaches the parallel trend channel, it is expected to find support, which may lead to a resumption of the upward trend. This consolidation phase can be a strategic opportunity for traders looking to enter or add to positions.

Technical Analyst : Alessio Barretta

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