Caterpillar Inc. (CAT) Stock: Shares Head Lower On Alleged Tax & Accounting Fraud

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Looking at the daily chart above you will notice that $CAT has been under some selling pressure ever since its has been under investigation. There will be some support around $90, $89.40 and at the 200-day moving average, currently sitting at $86.84. Those have all been key pivot levels in the past on the daily chart. We should see some resistance at $92.50 and where the 50-day moving average is currently sitting at $95.11.

Caterpillar

As you can see in the 5-minute chart above, shares had a strong downtrend day with decent sell-side volume before getting a light bounce at the end of day. I would remain cautious if you are trading the bounce as it could just be a relief rally before the next leg down.

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About the Author: Ross Cameron

Ross Cameron is a full time day trader and is the owner of Warrior Trading (https://www.warriortrading.com). At Warrior Trading, Ross hosts a Day Trading Chat Room and teaches Day Trading Courses to beginner and advanced traders. Over the years he has offered day trading webinars and seminars for many large companies including eSignal, Trade-Ideas, Lightspeed Financial, and Speedtrader. In 2016, Ross was nominated for a Benzinga Fintech award for Best Educator.

Note: This post was originally published on ModestMoney.com. Check out their site for the latest investing news and analysis.

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