Swing Trade Idea (CAT) – August 17, 2021
Our bullish trade for Tuesday, August 17th is Caterpillar Inc (CAT). CAT is part of the Industrials Sector (XLI). XLI has experienced a 3.4% gain in the last month as Industrials rebound after pulling back since June.
CAT has recently broke above the $214 resistance level and has retested it providing a good entry point for a bullish setup. With a technical score of 7 (out of 10), CAT is a strong stock that will likely move higher.
As a close, if CAT were to trade below $214 for multiple days, this would invalidate our analysis and 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 below $4.05.
