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Charts point to trouble ahead for one surging Dow stock

Caterpillar shares have been on a tear – rallying more than 35 percent in the past year, but one top technician says the charts are pointing to trouble ahead.

The S&P Industrial sector is one of the best-performing groups in the past year, but Carter Worth of Cornerstone Macro noted that many of the industrial giants have pulled back, and it could be foreshadowing a leg lower for Caterpillar.

While looking at charts of Cummins, Ingersoll-Rand, Illinois Tool Works, Union Pacific and Deere, Worth pointed out that while all of the names showed clear uptrends, all of these stocks have then checked back and seen breaks in those trends.

"There's a pattern going on here … [they're] all gapping [lower]," Worth said Friday on CNBC's "Options Action."

"Here's Caterpillar. Here's its uptrend. It's the only guy holding up, so either their sort of a miracle, or they're going the same way [down]," Worth explained. "I bet you they're going the same way. I'm a seller. It's pretty simple."

Caterpillar shares were trading around $113.70 midday Monday.

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