CATERPILLAR INC. - Rose Above $97.30 Level - 01/30/2017 (GMT)

Caterpillar (NYSE: CAT) rose strongly during the last trading session on Friday breaking over the technical level at $97.30. The tendency of the stock is still strong bullish and we expect, in the next days, the upward move of the stock to continue towards the resistance at $101.50. This level most likely will not apply strong selling pressure and our focus is directed around the $104.30 resistance level.

The price is trading over the 50, 100 and 200 SMAs on the 4-hour chart, which is adding to the odds that this market will continue rising. MACD is above the zero line and gives a signal for possible incline on price. RSI is sloping up supporting the expectation for new possible long positions. In the opposite scenario – if a strong wave of new sales appears and the market moves down below $88.90, then the forecast for bullish movement would be nullified and we may see the price to decline further to $80.90.