AAL

Bullish Signal Predicts More Records for Caterpillar Stock

Year-over-year, CAT is up 102%

Digital Content Manager
May 20, 2021 at 11:59 AM
facebook X logo linkedin


The shares of construction machinery name Caterpillar Inc. (NYSE: CAT) are down 1.2% at $234.04 at last check. The security is just now cooling from a May 10, all-time high of $245.77, though it remains up a notable 102% year-over-year. Another reason why traders should not dismiss the security just yet is that this recent pullback has placed shares near a trendline with historically bullish implications. In other words, Caterpillar stock could reach even more record highs over the next few weeks.

More specifically, the equity just came within one standard deviation of its 40-day moving average, after spending over two weeks above this key trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, nine signals have occurred in the past three years. Caterpillar stock enjoyed a positive return one month later in 89% of those cases, averaging a substantial 6% gain. From its current perch, a comparable move would put CAT just above the $248 mark, at a brand new record high.

CAT 40 Day

A shift in analyst sentiment would create additional tailwinds for Caterpillar stock. Of the 16 in coverage, 10 carry a tepid "hold" or worse rating, while six say "strong buy." This leaves plenty of room for upgrades going forward, which could push shares higher still.

What's more, CAT premiums are a bargain at the moment, making now an ideal time to weigh in on the stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 29% sits in the 15th percentile of its annual range, indicating options players are pricing in low volatility expectations right now.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.