A Tale of Two Fibonacci’s

As the tagline says, we had two Fibonacci levels posted by CAT on Friday.

The chart shows a print low on the 17th, to Friday’s high, was 38.2% retrace of the move from all-time highs.

The insert shows the close version of the same chart. On a close basis, CAT retraced 23.6%.

Caterpillar CAT, Daily

Note the action of the past two trading days were ‘inside’ the down bar posted on the 17th.

With the trend break from the prior update, then posting a retrace of two Fibonacci levels simultaneously, plus the large high-volume bar (on the 17th), suggests the upside test may be complete (not advice, not a recommendation).

The week ended with multiple records set, link here.

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279