We recently reviewed the charts of heavy equipment maker Caterpillar (CAT) on October 27 and wrote that "... now the chart is stronger looking. Let CAT correct for a few days before approaching the long side."
CAT has stopped short of $220 and a fresh look is worthwhile.
In the daily bar chart of CAT, below, we can see that the shares blasted sharply higher in October. Prices gapped above their August highs and above the 200-day moving average line. The price gap could have been a measuring gap but prices have begun to stall in overhead resistance.
The trading volume turned heavy and the On-Balance-Volume (OBV) line responded on the upside. The Moving Average Convergence Divergence (MACD) oscillator is clearly bullish.