Sell signal, week 13: the decline picks up again
Caterpillar drops 5.3% and loses its 20-week average after a 2-week rebound
Our view last week
Caterpillar gains 2.9% and climbs back above its 20-week moving average, in the 837 area, after bouncing off the 20-day average. Money flow, which turned positive a week ago, strengthens again, and the weekly RSI is at its highest reading in 4 weeks. For Caterpillar stock the sell signal is still live, with the short's gain down from 6.7% to just under 4%: price action is carrying this industrial name toward the Inversion Point, in the 864 area. A swing trading setup to watch closely.
This week's summary
Caterpillar drops 5.3% and in a single week loses its 20-week moving average, in the 834 area, wiping out the rebound of the previous 2. The slide stalls just above the 200-day average, in the 780 area, and the weekly RSI falls to its lowest reading in 4 weeks. For Caterpillar stock the sell signal regains its stride: price action pulls this industrial name away from the Inversion Point, in the 864 area, and the short's gain climbs back to 9%. A swing trading setup to keep on the radar.
IQS Phase
40
ordinary
Signal Strength
45
decline starting to make lower lows
Sizing
REDUCED
Ranking
#26 / 174
US stocks
Trade P&L %
+9.07%
from signal to date, no stop loss
Caterpillar (CAT) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 26th among the 174 sell signals for US stocks in our ranking, with a signal strength of 45 out of 100.
Sector context
SectorIndustrial
Benchmark ETFXLI
Sector regimein positive regime
Performanceweekly -0.41% · monthly -1.48%
CAT belongs to the industrial sector (reference ETF XLI). The sector is classified in positive regime according to our weekly reading.
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