Submitted by admin on Sun, 10/18/2009 - 21:36
Posted in
This chart for Caterpillar (CAT) shows a head and shoulders pattern. It's well after the fact but it's shown here for instructive purposes.
As you can see, CAT has had quite a run-up since it broke the confirmation line at $37.5/share back in July. Using the height of the formation which is about $20, the target rise should be about $57.5/share. This doesn't mean that it won't go up further. That's just the target price based on the formation.