• 364 days Will The ECB Continue To Hike Rates?
  • 365 days Forbes: Aramco Remains Largest Company In The Middle East
  • 367 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 766 days Could Crypto Overtake Traditional Investment?
  • 771 days Americans Still Quitting Jobs At Record Pace
  • 773 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 776 days Is The Dollar Too Strong?
  • 776 days Big Tech Disappoints Investors on Earnings Calls
  • 777 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 779 days China Is Quietly Trying To Distance Itself From Russia
  • 779 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 783 days Crypto Investors Won Big In 2021
  • 783 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 784 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 786 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 787 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 790 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 791 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 791 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 793 days Are NFTs About To Take Over Gaming?
Joseph Russo

Joseph Russo

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating…

Contact Author

  1. Home
  2. Markets
  3. Other

CAT to Follow Crude to $40.00?

CAT

Is it reasonable to assume that so goes Crude Oil, so goes Caterpillar? Perhaps it is, or perhaps not, but the price charts of these two economic giants do show a fair degree of correlation.

Some Motley Fools I know think there may be some fundamental correlations as well.

Interestingly, both properties share downside price targets of $40.00 dollars. The major difference is that Crude is very much leading the way with a recent print low of $44.78 per barrel, which is not too far from our technical target.

CAT Secular Trend Chart compared to Crude Oil

In striking contrast, CAT's recent print low of $83.04 still harbors the potential for enduring another 50% of downside to meet a similar fate.

The historic record of rises and chops from their respective 2008-2009 print lows is rather stunning but not too surprising considering the effect that massive interventions tend to have in lifting all boats in general tandem.

That both instruments project downside price targets of $40.00 dollars, is rather eerie to say the least.

In closing, only time will tell whether the crash in Crude Oil foresaw a similar crash in Caterpillar from which astute traders and investors capitalized on handsomely.

Until Next Time,
Trade Better / Invest Smarter

 


The Chart Cast Pilot and Elliott Wave Technology's Guardian Revere Long-Term Trend Monitor are the proud sponsors of this communication.

 

Back to homepage

Leave a comment

Leave a comment