Thursday, November 14, 2013

CAT Caterpillar Weekly Chart Sideways Symmetrical Triangle Descending Triangle

The chart helps envision a D9 CAT Dozer balanced on the head of a pin. When this machine chooses a side, the earth will rumble. The blue sideways symmetrical triangle is in play and the indicators have all lined out sideways with no further to go. A decision must be made. Either the dozer runs over the bulls now trying to pick up nickels in front of the dozer, or, the dozer backs up and the bears do not hear the beep-beep-beep, destined to be crushed just as they have been all year long. Metaphors aside, the chart shows a major decision on tap. The moving averages have lined out dead flat as well. Either the global economy is going like gangbusters, and China and Indonesia will catapult CAT to prior greatness and more, or, the global economy is actually sicker than anyone thinks, and CAT collapses.

At 85-ish now, if the breakout is to the upside, the vertical side is about 50 handles, so the target is 135. If the bears win the wrestling match, the downside target is 35. Obviously, the global economic ramifications will be significant; Caterpillar is a key economic bellwether. CAT is also greatly impacted by the mining sector. Also of interest is the red descending triangle with base line at 80-ish. If the 80 level fails, the lower target for this pattern is 50-ish. Watch CAT closely; something is about to hit the fan blade. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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