This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Big Stocks Ready to Slingshot Higher


A similar setup is shaping up in Caterpillar (CAT - Get Report), even if it's not as textbook right now. While ascending triangles are typically continuation setups that come into play during an uptrend (as with MNR), Caterpillar is forming an ascending triangle bottom, a triangle pattern that's forming at the bottom of a downtrend. It's a perfect example of the idea that the pattern itself isn't as important as what's actually causing it.

>>5 Stocks With Big Insider Buying

In real terms, it's helpful to think about an ascending triangle pattern in terms of buyers and sellers. That $92.50 resistance level in CAT is a price above which there's a glut of sellers -- they've absorbed any buying pressure at that price the past few times CAT has tried to move higher.

At the same time, the higher lows in the stock indicate that there is increasing buying pressure at lower levels. For that reason, it's best to be a buyer when the stock moves above $92.50 -- that's an indication that buyers are now more eager to buy CAT at a higher price than sellers are to sell. With selling pressure absorbed, the stock will have increased room to run.

Momentum has been in an uptrend for CAT since before the stock bottomed back in July. That adds some extra confidence over this setup since momentum is a leading indicator of price. As with MNR, it's critical to wait for the breakout to happen in CAT before buying. That's when it becomes a high-probability trade.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CAT $77.84 0.00%
CAJ $28.35 0.00%
MSFT $50.61 0.00%
MNR $11.61 0.00%
RDS.A $52.94 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs