CAT Caterpillar Weekly Chart Overbot Negative Divergence

CAT Caterpillar weekly chart shows the matching and higher high now occurring, just as the RSI and money flow indicators demanded from their long and strong behavior in February. Now that price is higher than February's high, a look at the indicators shows negative divergence across the board, so everything is lined up for price to move down. Plenty of gap fills to target underneath from here as well as sturdy horizontal support at 104, 93 and 84.

The strength has been impressive but the chart says sideways to sideways down moving forward. Rubber is poised to roll over now as well, and considering that CAT equipment uses a lot of rubber tires, this behavior would be consistent with the sideways to sideways down projection moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.