Sell signal · week 12
Caterpillar gains 2.9% and reclaims its 20-week average as the short's gain thins out
Our view last week
On Caterpillar, money flow is back above zero after 12 negative weeks, with 81% of the week's volume on the buy side and a 1.6% gain. The MACD histogram is rising for a 4th week and the ADX has been falling for 12: the decline is losing conviction. For Caterpillar stock the sell signal is still in place, with the short up 6.7%, down from 8.1% a week ago: a swing trading setup among US stocks to follow closely.
This week's summary
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.
IQS Phase
58
ordinary
Signal Strength
2
decline fading out
Sizing
MINIMUM
Ranking
#151 / 175
US stocks
Trade P&L %
+3.96%
from signal to date, no stop loss
Caterpillar (CAT) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 151st among the 175 sell signals for US stocks in our ranking, with a signal strength of 2 out of 100.
Sector context
SectorIndustrial
Benchmark ETFXLI
Sector regimeweak phase
Performanceweekly -0.28% · monthly -1.64%
CAT belongs to the industrial sector (reference ETF XLI). The sector is classified weak phase according to our weekly reading.
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