Buyers Stepping In - Caterpillar

Published on Thursday, 26 January 2012 11:38 Written by Christian Paolinetti

New York, January 26th (TradersHuddle.com) - Unusual high volume detected on shares of Caterpillar, Inc. (NYSE:CAT), early in the trading session. Caterpillar is currently trading higher by 2.64%, so definitely the buyers stepping in, as the stock's volume is already above average.

Caterpillar Inc. (NYSE:CAT) designs, manufactures, and markets construction, mining, agricultural, and forestry equipment. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar, the largest earth moving equipment maker in the world, distributes its products through a worldwide organization of dealers. The maker of bulldozers and excavators was founded in 1925 and headquartered in Peoria, IL.

Caterpillar has already traded 1.062 times its 3-month average volume, and has calculated support and resistance at $86.29 and $107.24 respectively. Traders like to use volume as their lie detector for price action moves through predefined trading ranges.

The overall market index S&P 500 is trading lower by -0.16% from its previous trading close, which means that Caterpillar stock is outperforming the overall market.