Posted on December 4, 2018
By Carl Surran, SA
It’s easy come easy go for Caterpillar (CAT -4.7%) shares, which have surrendered all of yesterday’s gains that followed the U.S.-China trade truce and an upgrade from BofA Merrill Lynch.
But Ari Wald, head of technical analysis at Oppenheimer, says CAT is not the stock to take advantage of the trade war truce, telling CNBC that “in general, we are cautious on capital goods stocks that are exposed to the global economy and what we see as a decelerating macro backdrop.”
“If you’re buying this stock, you’re making the case that the global backdrop is bullish,” according to Wald. “What we instead see is a stock rallying into very formidable resistance at around $142.”
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