We last looked at Caterpillar Inc. (CAT) on July 28 and recommended that investors, "Continue to hold CAT longs risking a close below $130." We noted potential price targets of $170 and $215. With prices trading up at a new 52-week high another look at CAT seems in order.
In this updated daily bar chart of CAT, below, we can see that the shares have just pushed up above their January 2020 highs. Prices are trading above the rising 50-day moving average line and the slower-to-react 200-day moving average line has started to turn higher. We can see a bullish golden cross of these two averages in the beginning of August.
The On-Balance-Volume (OBV) line has moved up to a new high to confirm the price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since May and is turning upwards to a fresh buy signal.