CAT: Bull-Flag-Formation, Levels to Watch!Caterpillar Inc.BATS:CATVincePrinceHello There, welcome to my new analysis about CAT (Caterpillar, Inc.) on the daily timeframe perspective. In recent times I have been monitoring the stock market to pick stocks that have strong potential for further growth. Especially in the current market, profitable trades can be made by following trend patterns and breakout scenarios. Earnings and fundamental momentum, as well as market sentiment, offer additional confirmation for such stock picks like I have detected with CAT. As when looking at my chart, we can watch there how CAT steadily forms new highs within this consecutive uptrend. Recently it already increased strong bullish momentum. The bullish volume is also supporting this upward thrust. As CAT is penetrating further upper levels, there is a high likelihood that the uptrend continues, especially when CAT forms new highs after another. The most important formation in this whole structure is the ascending bull flag formation. This is a substantial continuation formation. Right now, CAT has already bounced within the 65-MA marked in green and the 35-MA marked in blue. A final bounce and breakout above the upper boundary, as it is seen in my chart, will complete the whole flag formation and activate the targets. The uptrend and breakout pattern are also supported by the steady bullish MACD crossover. Once the whole bull flag formation has been completed, the target zone at 1300, as marked in my chart, will be activated. The bullish trend is supported by strong earnings momentum, with CAT consecutively increasing earnings over the past quarters. Also, the ETF structure of CAT looks really bullish as the ETFs add additional volume to CAT. In the current market phase, such stocks can be a driver of substantial surplus profits. In this case, it is highly necessary to pick stocks that have strong upside potential and short those that are likely to decline heavily. This is what I am also following in a total return approach, considering the optimal long and short candidates. In this manner, thank you a lot for watching! What do you think about CAT at the moment? Let us know in the comments! VP