From a CAT to a Butterfly?And another one:
A New Year and a New CAT?
From what I see, CAT is forming a nice bullish flag here on the monthly timeframe. There has been a nice back test on the weekly timeframe which gives me conviction in the pattern I see forming.
Using technical analysis to form a price target, I see a conservative price target of $285 to $300, with the potential to go to $325 plus.
Of course, this will not go straight up (because that would be too easy). Considering I did not have this stock on my watch list, I will be looking to get in by the end of this week.
If playing options, I would look for calls on a longer timeframe such as a few weeks out to a few months out. I would even say that this is a buy and hold (buying stocks or even something for retirement accounts).
If this goes the way I expect it to (up), this dirty caterpillar could turn into a beautiful money butterfly for us.
Of course, I know nothing and the market is the final judge. So don't trust me, do your own due diligence. Thanks.
