Details: Looking for at least one more leg higher within wave iii as we seem to have been correcting in micro wave 4 and are now resume higher towards 400$.

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.

CAT Elliott Wave technical analysis – Daily chart

On the daily chart, Caterpillar Inc. is advancing in an impulsive motive structure within Minute Wave {iii}. The stock is progressing higher and currently in Wave (v) of {iii}. This suggests that there is further upside potential, with $500being the projected target for the completion of Wave {iii}.

The stock continues to exhibit strong bullish momentum, and traders should look for continuation higher, particularly as the move approaches critical resistance levels.

CAT Elliott Wave technical analysis – One-hour chart

On the 1-hour chart, Caterpillar appears to be progressing within Wave iii, and specifically within Micro Wave 5 of iii. After completing a corrective phase in Micro Wave 4, the stock is now resuming its upward movement, with the next upside target likely around $400.

This final leg within Wave iii suggests at least one more push higher before a potential corrective phase begins. Traders should watch for any resistance near $400, which could trigger some short-term consolidation before further upside.

Technical analyst: Alessio Barretta.

CAT Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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