$CAT is in a new “NoGo” trend.
After final highs in the “Go” trend in early April, we saw Go Countertrend Correction Icons (red arrows) indicating that price may struggle to go higher in the short term. Indeed, price moved away from those highs and GoNoGo Trend painted the “Go” trend weakness with a majority of weaker aqua bars. During that time, GoNoGo Oscillator fell to test the zero line from above and was unable to find support. After riding the zero line for a few bars, allowing a small GoNoGo Squeeze to build, the oscillator broke into negative territory on continued heavy volume. A gap lower saw price fall to test support and GoNoGo Trend painted an amber “Go Fish” bar as the market was left uncertain about the direction of the trend. This was quickly followed by “NoGo” bars. As price tried to rally, GoNoGo Oscillator rose to test the zero level this time from below, where it was rejected. Now, price is retesting the horizontal support level and GoNoGo Trend is painting strong purple bars as GoNoGo Oscillator is in negative territory on heavy volume but not yet oversold. With momentum clearly in the direction of the “NoGo” trend, we will look for price to fall to new lower lows.
