Caterpillar Inc. (CAT) Elliott Wave analysis [Video]

CAT Elliott Wave Analysis Trading Lounge.

Caterpillar Inc., (CAT) Daily Chart.

Function: Counter Trend.

Mode: Corrective.

Structure: Complex.

Position: Wave iv of 3.

Direction: Bottom in iv.

Details: We could have a wave iv in place which would suggest the trend is strong. If not we could have completed wave (a) of iv.

CAT Elliott Wave technical analysis – Daily chart

Caterpillar Inc. (CAT) is showing signs of a possible bottom formation in wave iv, indicating that the overall trend remains strong. If this wave iv is complete, we could soon resume the uptrend into wave 5. However, there’s also a possibility that we’ve only finished wave (a) of iv, signaling a deeper correction before the uptrend resumes. A decisive move will help clarify the path forward.

CAT Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Complex.

Position: Wave i of 5.

Direction: Bottom in wave iv.

Details: Here we can see a three wave move with a nice subdivision in wave (c). Given the fact wave iv was relatively short compared to wave (iv) of one lesser degree, we could still be in wave (a) of iv. Upside target at equality of 3 vs. 1 stands at 450$.

CAT Elliott Wave technical analysis – One-hour chart

On the 1H chart, Caterpillar Inc. (CAT) shows a well-defined three-wave correction with a clear subdivision in wave (c). While it seems like wave iv was shorter than wave (iv) of one lesser degree, we could still be in the early stages of wave (a) of iv. If wave iv holds, the upside target for wave 5 stands at 450$, based on the equality of wave 3 vs. wave 1 projections.

This analysis focuses on the current trend structure of Caterpillar Inc., (CAT) utilizing the Elliott Wave Theory on both the daily and 1-hour charts. Below is a breakdown of the stock’s position and potential future movements.

Caterpillar Inc. (CAT) Elliott Wave analysis [Video]