Caterpillar Wave Analysis – 21 July 2023

– Caterpillar reversed from resistance level 264.50

– Likely to fall to support level 254.00

Caterpillar recently reversed down from the major long-term resistance level 264.50, which stopped the previous sharp uptrend at the start of this year, as can be seen below.

The downward reversal from the resistance level 264.50 stopped the previous upward impulse waves iii and 3, forming the daily Evening Star.

Given the strength of the resistance level 264.50 and the overbought daily Stochastic, Caterpillar can be expected to fall further toward the next support level 254.00 (former monthly high from March).