Monday, June 14, 2021 12:55 PM EDT
Investors are watching a correction in Caterpillar Inc (CAT) stock over the last week. Caterpillar went from $87.50 to a recent all-time high near $247.00 on the hopes of continued Federal stimulus as well as a massive infrastructure bill. With stimulus likely over and the infrastructure bill in doubt, Caterpillar is seeing a large correction. Investors and swing traders are wondering where the buy level will be? The answer can be found in the stock charts. As a pro trader, I look for multi-factor levels. In other words, a price point where I have 2-3 technical points converging. In the case of Caterpillar, the level is $199.00.
This coincides with a technical pivot point from the high in January 2021 as well as the rising 200 moving average on the daily chart. This gives investors and swing traders major support to buy on Caterpillar. Look for a snap-back bounce should the stock hit that technical point in the coming week or two.
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Disclaimer: All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. InTheMoneyStocks, LLC and its representatives assume no responsibility for your trading and investment results. All information on the website was obtained from sources believed to be reliable., but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. InTheMoneyStocks, LLC, its employees, representatives and affiliated individuals may have a position or effect transactions in the securities herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves a very high degree of risk. Futures and Options trading are not suitable for all investors. Past results are not indicative of future results. InTheMoneyStocks, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment results.
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