Caterpillar Inc. : Reach the record high
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$109.05 | US$130 | US$100 | +19.21% |
Total sales were 17.243 billion dollar, an increase of 4.436 billion dollar, or 35 percent, from the fourth quarter of 2010. Asia is the group’s strongest market with a 49 percent increase in total sales, then Latin America with 33 percent growth. Sales in North America only grew by 28 percent.
For 2012, the company projects sales for 68-72 billion dollar, and earnings of around 9.25 per share, higher than Thomson Reuters’ estimates.
Technically, in daily chart, the share is in bullish trend on short and mid-term, as identified by upward trend of moving average 20-days situated at 100 USD. Today the share is open with an important bullish upside gap about 3%, on the score of enthusiasm for earnings releases. The share is very close to reach the record high at 115.5 USD.
For the very short-term we suppose a fall towards 106 USD, in this way the share may fill the gap. This price could be a good point of entry; in fact the bullish pattern with strong fundamentals, they could continue to pull the share in upward trend. Investors with long-term trading strategy they could take a buy position to aim at 130 USD, with potential gain of 22%, replying the last upward trend. We should cover the strategy with a stop loss at 100 USD