The bearish DailyPlay we chose for Monday March 27th is Caterpillar (CAT). CAT is part of the Industrial Sector (XLI). Over the last month, XLI has experienced a 1.20% move lower and its 1m and 6m trend has turned bearish and neutral on 3/23 while breaking below its $65 support level.
Caterpillar’s 1m and 6m trends turned bearish on 3/21 and recently broke below its $93 support level on high volume. With a technical score of 6 (out of 10), CAT is a bearish stock that looks to continue lower.
As a stop loss, if CAT was to trade above $93 for multiple days, this would invalidate our analysis and suggest getting out of the trade.