CFD Trading – Sell Caterpillar (CAT.NYS) @$208.20. Stop @ $216.20 and Target @ $192.20

Caterpillar Inc. Stock Code CAT.NYS

Outlook

Price attempted to break above the cloud but was capped by the Conversion and Base lines, keeping the downtrend intact. In the previous trading session, price broke below the cloud, which could be a hint the corrective rally could have ended. Conversion line and Base line had a bearish crossover and is hinting of a bearish price trend ahead. Lagging Span is above price of 26 days ago but is below the cloud at the moment.  MACD is bearish and looks like it will turn lower and away from the zero line. If price is unable to move above the Base line, it could be heading towards the support at $192.

Strategy                  

$208.20              Sell

$192.20              Price Target

$216.20              Risk Management Stop

3 weeks              Trade Duration

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