Explanation to Bollinger's Bands

Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.

Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.

Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation

BandWidth defines the current width of the band.
%b defines the current position within the band.

BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)

Live Samples:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.

Source: http://www.bollingerbands.com

RSI low/high Values: [ 25 - 75 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of CAT
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Caterpillar Inc stock upgraded from Buy Candidate to Strong Buy Candidate after Wednesday trading session.
(Updated on Mar 27, 2024)

Buy or Hold candidate since Dec 07, 2023 Gain 41.66% PDF

The Caterpillar Inc stock price gained 2.32% on the last trading day (Wednesday, 27th Mar 2024), rising from $356.39 to $364.65. During the last trading day the stock fluctuated 1.94% from a day low at $357.88 to a day high of $364.81. The price has risen in 8 of the last 10 days and is up by 6.77% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 398 thousand more shares were traded than the day before. In total, 2 million shares were bought and sold for approximately $741.93 million.

The stock lies in the middle of a strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 26.21% during the next 3 months and, with a 90% probability hold a price between $430.54 and $472.89 at the end of this 3-month period.

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CAT Signals & Forecast

Mostly positive signals in the chart today. The Caterpillar Inc stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $358.57 and $335.45. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, January 17, 2024, and so far it has risen 30.87%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Support, Risk & Stop-loss for Caterpillar Inc stock

On the downside, the stock finds support just below today's level from accumulated volume at $321.40 and $315.09. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Caterpillar Inc finds support just below today's level at $321.40. If this is broken, then the next support from accumulated volume will be at $315.09 and $300.77.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $6.93 between high and low, or 1.94%. For the last week, the stock has had daily average volatility of 1.70%.

Our recommended stop-loss: $351.74 (-3.54%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 49 days ago.)

Trading Expectations (CAT) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect Caterpillar Inc to open at $362.45, and during the day (based on 14 day Average True Range), to move between $358.23 and $371.07, which gives a possible trading interval of +/-$6.42 (+/-1.76%) up or down from last closing price. If Caterpillar Inc takes out the full calculated possible swing range there will be an estimated 3.52% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $321.40, some $43.25 (11.86%) from the current price of $364.65, our system finds the risk reward attractive.

Is Caterpillar Inc stock A Buy?

Caterpillar Inc holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 6.469 Strong Buy Candidate Upgraded

Predicted Opening Price for Caterpillar Inc of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
$362.45 ( 0.604%) $364.65

The predicted opening price is based on yesterday's movements between high, low, and closing price.

Trading levels for CAT

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 369.38 1.30 %
R2 366.73 0.570 %
R1 365.09 0.122 %
Current price: 364.65
Support S1 359.80 -1.33 %
S2 358.16 -1.78 %
S3 355.51 -2.51 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 0 .
R2 0 .
R1 0 .
Current price 364.65
Support S1 321.40 -11.86%
S2 315.09 -13.59%
S3 300.77 -17.52%

CAT Dividend Payout History


# Declaration Date Ex-Date Pay Date Amount Yield
1 Dec 13, 2023 Jan 19, 2024 Feb 20, 2024 $1.30 0.414%
2 Oct 20, 2023 Oct 20, 2023 Nov 20, 2023 $1.30 0.519%
3 Jun 14, 2023 Jul 20, 2023 Aug 18, 2023 $1.30 0.475%
4 Jun 14, 2023 Jul 19, 2023 Aug 18, 2023 $1.30 0.475%
5 Apr 12, 2023 Apr 21, 2023 May 19, 2023 $1.20 0.559%

FAQ

What is the symbol for Caterpillar Inc Stock and on which exchange is it traded?
The symbol for Caterpillar Inc is CAT and it is traded on the NYSE (New York Stock Exchange).

Should I buy or sell Caterpillar Inc Stock?
Caterpillar Inc holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

How to buy Caterpillar Inc Stock?
Caterpillar Inc Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy Caterpillar Inc Stock.

What's the current price of Caterpillar Inc Stock?
As of the end of day on the 2024-03-27, the price of an Caterpillar Inc (CAT) share was $364.65.

What is the 52-week high and low for Caterpillar Inc Stock?
The 52-week high for Caterpillar Inc Stock is $365.52 and the 52-week low is $204.06.

What is the market capitalization of Caterpillar Inc Stock?
As of the 2024-03-27, the market capitalization of Caterpillar Inc is 182.098B.

When is the next earnings date for Caterpillar Inc?
The upcoming earnings date for Caterpillar Inc is Apr 25, 2024.
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About Caterpillar Inc

Caterpillar Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, excavators, motorgraders, pipelayers, road reclaimers, site prep tractors, skid steer loaders, telehandlers, and utility vehicles; mini, small, medium, and large... CAT Profile

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