CAT Swing Long Reversal

CAT has a downtrend 10% from its 30-day high.

However, fundamentally the industrial is holding up quite well.

The downtrend was inverse parabolic accompanied with

an appropriate volume pattern showing 3X relative volume

This is sometimes called the retirement trade pattern

or V-type pattern. CAT has dropped to three standard

deviations below the anchored VWAP /

This makes it undervalued well below fair value.

I see this as a good setup for a long swing trade or a call options

contract with the expectation of a 50% retracement of a

10# drop or a 5% price target For the call options I will

target the anchored VWAP at a strike of $243 about 12 DTE.