Caterpillar Inc. (CAT) is on the move to the upside Monday. The company reported today that they had signed an agreement to acquire the Oil & Gas Division of the Weir Group PLC (WEIGF) , a Scotland-based global engineering business. Weir Oil & Gas produces a full line of pumps, flow iron, consumable parts, wellhead and pressure control products.
We last looked at CAT back on September 9 writing that, "Continue to hold previous longs recommended in prior reviews and consider buying more CAT on this breakout. Raise stop protection to a close below $140 now. The $173 and then the $213 areas are our new price targets." CAT has stayed above our risk point so we remain long.
Let's check out the latest charts. 
CAT is still pointed higher. In this daily bar chart of CAT, below, we can see that CAT is above the rising 50-day moving average line after a number of successful tests of that indicator. The slower-to-react 200-day moving average line is starting to rise.
The On-Balance-Volume (OBV) line has been trending higher since late March and even showed strength in the past month when prices dipped.
The Moving Average Convergence Divergence (MACD) oscillator is turning upwards for a fresh outright buy signal.
In this weekly bar chart of CAT, below, we can see a positive picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of CAT, below, we can see that a trade at $157.05 will be a bullish breakout with a $172 price target.
Bottom line strategy: Continue to hold previously recommended longs in CAT. Stop protection could be raised to a close below $142. The $172 area is our nearest price target.
