Details: Looking for upside into wave (v) as we seem to have completed the correction in wave (iv). As we promptly bounced off 300$, we could expect to reach Medium Level at 400$ with wave (v).

CAT Elliott Wave Analysis Trading Lounge 1H Chart,

Caterpillar Inc., (CAT) 1H Chart.

CAT Elliott Wave technical analysis

Function: Trend.

Mode:: Impulsive.

Structure: Motive.

Position: Wave iii of (v).

Direction: Upside in wave iii.

Details: Looking for a potential 1-2 within sub minuette wave iii, or else we could be in a leading diagonal in wave i, with what is labelled as wave 1 and 2, as wave 3 and 4 of the diagonal.

Welcome to our latest Elliott Wave analysis for Caterpillar Inc. (CAT). This analysis provides an in-depth examination of CAT's price movements using the Elliott Wave Theory, offering traders insights into potential trading opportunities based on the current market structure. We will explore both the daily and 1-hour charts to provide a well-rounded perspective on CAT's price action.

CAT Elliott Wave technical analysis – Daily chart

After completing a corrective wave (iv), CAT has rebounded sharply from the $300 level. This bounce suggests that wave (v) is underway, with the potential to push towards the Medium Level at $400. The completion of wave (v) could signify the end of the current impulsive cycle, making this a critical phase for traders to monitor for potential profit-taking or the beginning of a new corrective phase.

CAT Elliott Wave technical analysis – One-hour chart

The 1-hour chart suggests that CAT is likely progressing within subminuette wave iii of (v). There are two possible scenarios unfolding: (1) a traditional 1-2 structure within wave iii, or (2) the formation of a leading diagonal, where what is currently labeled as waves 1 and 2 could actually be waves 3 and 4 of the diagonal. In either case, the structure implies further upside as wave iii completes and moves towards wave v.

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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