Above Resistance - Caterpillar

Published on Thursday, 29 July 2010 06:44 Written by Christopher Lynn

New York, July 29th (TradersHuddle.com) - Shares of Caterpillar, Inc. (NYSE:CAT) closed the trading session at $69.18 just above calculated resistance at $67.365 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Caterpillar Inc. 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's stock was trading in a well defined range with support at $63.56 and resistance at $67.365, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Caterpillar's stock is still near the broken resistance level, traders will be focusing on $67.365 to see if the stock holds the breakout without rolling over.