Caterpillar Inc. (NYSE: CAT) showed a massive spike of over 8%, surpassing multiple barriers decisively in the past sessions. The Q2 earnings results were released yesterday, which were above the estimates. The positive impact led to the massive buying post gap-up opening and showed a long bullish marubozu candle indicating a breakout.
The net income rose by 74.66% to $2.92 Billion (YoY), and the total revenues by 21.56% to $17.32 Billion (YoY), showed massive growth. Moreover, the EBITDA margins increased by 66.10% to $4.19 Billion.
CAT stock price shows that sellers were trapped and the last session noted a short covering move. Furthermore, buyers gained massive momentum and attained traction.
The price action suggests that the stock has surpassed a significant hurdle and a block of sellers were left, which indicates a further rise toward $300 soon. CAT stock has entered the overbought zone, and a positive crossover was noted on the charts, which shows the buyers’ dominance.
Caterpillar, Inc. manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other. The Construction Industries segment supports customers using machinery in infrastructure and building construction applications.
The Resource Industries segment supports customers using machinery in mining and quarrying applications. It includes business strategy, product design, product management and development, manufacturing, marketing, and sales and product support. The Energy and Transportation segment supports customers in oil and gas, power generation, marine, rail, and industrial applications.
At press time, CAT stock price is trading at $288.65 with a massive intraday gain of 8.85% showing massive bullishness on the charts. Moreover, the intraday trading volume increased by 24% to 11.83 Million, and the market cap is $148.757 Billion.
In the last session, Credit Suisse revised its target price from $279 to $334 and maintained an outperform rating. Moreover, JP Morgan gave a target price of $315, whereas Jefferies gave a target price of $350, offering a growth outlook.
CAT Stock Shows Breakout On Daily Charts
On the daily charts, CAT stock price is trading beyond the significant moving averages and showed a breakout in the last session. Moreover, the price has escaped the 61.8% Fib level and attained 78.6%, showing strong bullishness. Furthermore, the price surpassed the upper bollinger band and noted a positive outlook. If follow-on buying arises, it will rise toward $300 in the following sessions.
CAT Stock Price Action On Short Term Charts
On the 4-hour chart, CAT stock price entered the overbought zone and noted massive buying in the last session.
The RSI curve sharply rose above the overbought region near 80, forming a positive divergence and indicating bullishness on the charts.
The MACD indicator showed a bullish crossover and green bars on the histogram reflecting buying traction, indicating a positive outlook on the charts.
Conclusion
Caterpillar Inc. (CAT stock) price has shown a massive bull move and surpassed multiple barriers in yesterday’s session. Moreover, the price action reflects the bull’s dominance and indicates a further rise toward $300 in the following sessions.
Technical Levels:
Support Levels: $270
Resistance Levels:$300
