We reviewed the charts and indicators of Caterpillar Inc. (CAT) yesterday, noting that "The charts and indicators of CAT do not yet show upside breakouts or strong trend reversals but experienced traders might consider probing the long side of CAT if they can afford a sell stop below $135. Being a cautious person I would wait for strength above $162."
Prices are trading higher this morning so let's check the daily bar chart again.
In this updated daily bar chart of CAT, below, we can see that prices made a wide outside day with a lower close on Monday. So far, prices are making an inside day or a session when the high and low of the day are within the prior day's range.
Volume was heavy and the daily On-Balance-Volume (OBV) line turned lower because CAT closed on heavy volume.
The Moving Average Convergence Divergence (MACD) oscillator narrowed slightly.
Bottom line: Aggressive traders may now want to react to strength above $147 and a weak close below $138.