CAT is currently still in a strong up trend. However, it's very close to crossing down below $58.00 where it would give us a SELL SIGNAL. However, even with a break below $58.00, CAT trend would still be up and CAT seems to be trending within two up trends, with the trend line I crossed and above its 50 day MA. Basically, a cross below $58.00 could send CAT as low as $54.00 where the 50 day MA currently stands. CAT has minor support also at $56.00 but I don't think it would hold up in the event where $58.00 is broken. For the moment CAT remains a HOLD, and I believe if the Dow Jones continues trending lower you will see CAT cross below $58.00. In the event where the Dow Jones would actually start moving higher again and that its SELL SIGNAL failed, you could simply expect CAT to continue upwards along this trend. However, the stochastic has already given us a SELL SIGNAL yesterday, and the MACD is about to also and will if CAT moves lower on Monday. However, remember that technical analysis is not a perfect science and can give false signals, and that is why until CAT stays above $58.00 it remains a HOLD. However, if you are in gains already with CAT, remember that you should never sacrifice too much of what you already accumulated and you may choose to sell before and in the event where CAT bounces back, you can repurchase CAT then. Remember that the goal is to staying in as long as you can when you're making money, but without sacrificing too much when you have it. Basically you want to make your moves when you have clear signals, rather than gamble with your gains. You will never be able buy at the bottom and sell at the peak.
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