Caterpillar Inc. (CAT) is showing signs of a possible bottom formation in wave {iv}, indicating that the overall trend remains strong. If this wave {iv} is complete, we could soon resume the uptrend into wave 5. However, there’s also a possibility that we’ve only finished wave (a) of {iv}, signaling a deeper correction before the uptrend resumes. A decisive move will help clarify the path forward.

CAT Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Complex.

Position: Wave {i} of 5.

Direction: Bottom in wave {iv}.

Details: Here we can see a three wave move with a nice subdivision in wave (c). Given the fact wave {iv} was relatively short compared to wave (iv) of one lesser degree, we could still be in wave (a) of {iv}. Upside target at equality of 3 vs. 1 stands at 450$.

CAT Elliott Wave technical analysis – One-hour chart

On the 1H chart, Caterpillar Inc. (CAT) shows a well-defined three-wave correction with a clear subdivision in wave (c). While it seems like wave {iv} was shorter than wave (iv) of one lesser degree, we could still be in the early stages of wave (a) of {iv}. If wave {iv} holds, the upside target for wave 5 stands at 450$, based on the equality of wave 3 vs. wave 1 projections.

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.

Caterpillar Inc. (CAT) Elliott Wave 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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