Caterpillar relinquishes gains - Analysis - 29-05-2020

Caterpillar's stock slid 1.37% in the last session away from a session-high at 124.52, as traders collect profits while the stock gathers momentum to help it rise anew, with the stock steadying above the support of 118.95, representing the ratio 50% of Fibonacci retracement levels for a descending wave in the short term (150.46 to 100.01), with support from the 50-day SMA.

Therefore we expect the stock to return higher, targeting the next resistance at 126.32, representing the ratio 61.8%. 

Expected trend for today: Bullish