Technical Earnings Preview: Caterpillar in shallow uptrend before earnings
The stock has been in a shallow uptrend since early April, but has been in a longer downtrend since hitting a peak of price in January. If the news or guidance is more positive than expected, the current uptrend could extend. Resistance levels to watch as potential upside objectives would be at $157.49, the $160 area, $165.58, the $170 area, and the 52-week high and life high at $173.24. If the news is a negative surprise, the downtrend may resume. Support levels to watch as potential downside objectives would be at the $150 area, $146.69, $143.48, the $140 area, $137.27, and the $135 area. The uptrend that had been in place from July 2017 was broken in January. The next lower trendline segment would intersect price at the $127 area. That portion of the uptrend began in May 2016.