They say a week is a long time in politics, and as the waters settle following the US presidential election, and relative calm is restored it’s time to revisit Caterpillar which I tipped as a good prospect, whoever won, and indeed this has proved to be the case. With both candidates pledging to spend on major infrastructure projects, Caterpillar was likely to be one stock that would do well, whatever the final result.
At the time I wrote the post, the stock was trading at $82.31, having tested the $90 area, both recently and earlier in the year, and building resistance as a result, and coupled with a strong platform of support below in the $80.50 area.
Post the election, the stock duly jumped on ultra high volume, gapping up on the open and confirming the breakout with strongly bullish sentiment. and moving from the previous close of $84.68, to close the day at $91.20. Since then, the stock has continued to climb higher on excellent volume and closed yesterday’s session at $94.17 having touched an intraday high of $95.50. With the old resistance level now firmly breached and with clear water above, the stock is now well on course to test the $107.12 high of late 2014 in the longer term.
By Anna Coulling
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