In today’s article, we will look at the past performance of Caterpillar Inc. ($CAT). In our we explained that the stock has made new all time highs and will be pulling back soon in 3 or 7 swings to correct the cycle from Sep 2022 lows. This is how we saw it .
$CAT ElliottWave Latest View (4H):
In the 4H chart above, we can see that the stock advanced in a 5 wave impulse from Sep 2022 lows. The cycle ended on 1.27.2023 at $266.04 and a pullback is taking place as expected. So far, the pullback is showing 3 waves and is getting close to the equal legs area at $222.91 – 202.21 where buyers should appear for a bounce. Looking at the rest of the market and using Market Correlation, we expect that the bounce should fail and continue lower in 7 swings as shown in the chart above. Traders can attempt to buy the equal legs area in 3 swings and get risk free once the reaction takes place. We have a bullish sequence against September 2022 lows. So as long as price remains above $160.02, $CAT is expected to remain supported in 3, 7 or 11 swings.
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Source:-forecast.com/uncategorized/caterpillar-cat-showing-5-wave-advance-whats-next/
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