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Caterpillar Stock Could Test 2018 Lows

Alan Farley

Dow component Caterpillar Inc. ( CAT) reversed on Tuesday after failing to reach the high posted when April 24 earnings triggered an opening rally followed by a 17-point slide. In turn, this bearish price action could presage a decline to multi-month lows that also completes the last leg of a broad topping pattern, raising the odds for a breakdown that ends the equipment giant's long-term uptrend. Caterpillar needs cordial relations with China to continue on the fast track, but trade tensions are taking their toll.