Caterpillar Technical Analysis (NYSE:CAT)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. The Caterpillar stock price data and volume are plotted in CAT stock charts and these trading charts form the basis of technical analysis.
See Caterpillar bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Caterpillar stock analysis that does not care for the fair value of a company but uses price and volume data only.
Caterpillar Moving Average
Moving averages show the CAT stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The 20 day moving average of $142.35 is below the last closing price of $152.76 and the 50 day moving average of $140.18 is below the last closing price of $152.76. The 10 and 20 day periods can predict short term moving average trends.
Caterpillar Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Caterpillar. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the upper band in the context of Caterpillar bollinger bands.
Caterpillar Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Caterpillar MACD line is below the signal line.
Caterpillar Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of CAT stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.