CAT Caterpillar Weekly Chart; Overbot; Rising Wedge; Negative Divergence; CAT Is About to Get Bulldozed

CAT is about to get bulldozed. Isn't it Ironic, as Alanis would sing, that investors are picking up nickels in front of a bulldozer nowadays and with CAT, they are picking up nickels in front of a Caterpillar dozer?

Price makes the higher high and all the chart indicators are negatively diverged. The RSI and stochastics are overbot agreeable to a pullback. Price has violated the upper band so the middle band at 532 is on the table and lower band at 406, both rising.

It is odd because every construction project, house, swimming pool, parking lot, pond, park, skyscraper, anything, starts with a hole in the ground dug by equipment made by Caterpillar, Deere, Cummins, Case, Ford, Kabuto, etc.... If CAT is topping-out, maybe most of the fun is already priced into the stock? It had a huge run and it is just a basic industrial company.

Okay, this makes sense; look at the monthly. The MACD and perhaps RSI on the monthly chart, and histogram, are squeezing out tiny higher highs, so after the multi-week selloff occurs, she will likely come back up on the monthly basis to match the highs again, say, in February or March. You do not have to guess; simply watch the charts.

Lots of charts have the same sick set-up. CAT should begin the down move now and fall into a multi-week slide lower. CAT is about to get declawed. Never do that to a cat since that is like getting your fingernails ripped out of your fingers. If your cat is scratching your furniture and you do not like that, then find a new good home for the animal, since you are obviously an *sshole.

Keystone has played CAT a lot over the years long and short but has not for the last few years. Obviously, the play is short going forward. The daily chart is in neggie d. Keystone may step in and begin shorting CAT tomorrow going forward for a few days/weeks. Time to go to Katmandu with Seger. 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.