Swing Trade Idea (CAT) – March 9, 2021
Our bullish trade for Tuesday, March 9th is Caterpillar Inc (CAT). CAT is part of the Industrials Sector (XLI). XLI has experienced a 6.7% gain in the last month as the sector recovery continues.
CAT has recently pulled back to an area of support at $211 and bounced higher with strong momentum providing a good risk/reward for a long entry. With a technical score of 8 (out of 10), CAT is a strong stock that will likely move higher.
As a stop loss, if CAT were to trade below $211 for multiple days, this would invalidate our analysis and would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $15.10.
