This CAT Will Bite

If a stock has gotten cheaper, that doesn't necessarily mean it is a bargain -- and, from a technical perspective, Caterpillar (CAT) is not the picture of a healthy stock. In fact, it looks like it could suffer more on the downside. Let's take a look at why that is, as well as what you'll need to see before Caterpillar might finally start to look good again.

First, if we just look at the moving averages on the daily chart, we'll see the price is below both the 200-day and 50-day simple moving averages. That's a bearish sign. Also, the five-day exponential moving average is below the 13-day EMA, which serves as another "sell mode" signal....180 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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