Caterpillar Wave Analysis – 22 December, 2022

• Caterpillar reversed from major resistance zone

• Likely to fall to support level 230.00

Caterpillar earlier reversed down from the major resistance zone located between the resistance levels 240.00 (top of the previous impulse wave (1)) and the 245.00 (which stopped sharp uptrend at the start of 2021).

This resistance zone was further strengthened by the nearby upper daily and weekly Bollinger Bands.

Given the overbought weekly Stochastic, Caterpillar can be expected to fall further toward the next support level 230.00.