Caterpillar ($CAT) Rebound Hits New All-Time Highs, What’s Next?


Good day traders and investors. In today’s article, we will be looking at the past performance of Caterpillar Inc. ($CAT). In our last article, we explained that the stock has reached the Blue Box zone where a bounce can occur. This is how we saw it in September 2022.

$CAT Elliott Wave September 2022 view (Weekly)

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$CAT Elliott Wave January 2023 view (weekly)

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The stock managed to hit a new low below July, but was still in the $170-128 blue box area. New lows came in at $160.59 on 2022-09-26, ending the correction from the 2009 cycle at (II). The rebound from $160.60 took place in an impulsive pattern reaching all-time highs, confirming that the correction is over. Once the wave ((1)) is over, expect a 3 or 7 swing pullback to correct the cycle from the 09/26/2022 lows where we expect buyers to enter for continuation on the rise. We like to buy it at the blue boxes against 26.09.2022.