Are The Mining Equipment Stocks Broken?

Caterpillar Inc.CAT is the leading mining equipment stock in the stock market. This stock looks to have topped out on May 2, 2011 at $116.55 a share. Since that high in early May, the stock has sold off sharply lower by nearly $15.00 to $102.00 a share. This current area is actually minor support on the daily chart as this is where CAT traded on April 18, 2011. Therefore, the stock could hold this level and bounce a little from here. Should CAT break and close below the $101.47 level on the daily chart there is a good chance that the stock will test the $96.75 support level. Caterpillar stock will have intra-day resistance around the $104.00 level. Should the stock decline intra-day traders can watch for support around the $100.00 area. Deere & Co.DE is another leading mining and farming equipment manufacturer that is declining after reporting earnings this morning. This stock is trading lower by $2.02 to $84.91 a share. The stock does have some minor daily chart support around the $84.75 area. Should the stock decline further, traders can watch for more daily chart support around the $82.35 level. Intra-day, the stock will have support around the $84.75 and $84.00 levels. Should the stock somehow rally off its intra-day low the resistance areas for DE stock will be around the $86.15 and $86.85 levels. Joy Global Inc.JOYG is another leading mining equipment maker that has been very weak as of late on the daily chart. This stock topped out in early April 2011 at $103.44 a share. Yesterday, JOYG stock traded as low as $85.50 a share. This is a 17.0 percent decline from the April high. The stock does have some minor daily chart support around the $85.00 and $86.00 areas. Should JOYG break and close below these levels traders will have to look at the $80.00 level as the next important daily support area. Intra-day, the stock will have resistance around the $87.50 level. Nicholas Santiago InTheMoneyStocks.com