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- 1 Cat stock price is trading below the key moving averages showcasing bearishness.
- 2 Caterpillar’s stock price is in the oversold region.
Caterpillar stock (CAT) failed to sustain the high of $293.81. CAT is trading below the dynamic support trendline, which could lead to further downfall. The market is also in a downtrend on a larger timeframe, as it is creating lower lows.
Caterpillar has been falling from its peak levels and forming lower-low structures. It is in a bearish trend after breaking below the 20-day and 200-day moving averages. The bearish pressure could push CAT to form a new lower low soon extending the downtrend.
The current situation requires traders and investors to be patient and wait for a clear signal of a break above or below the range before making any moves.
Caterpillar’s stock price fell 8.77% last week. It declined by 9.53% through the month. Furthermore, CAT shares experienced a 5.42% drop within the past three months and an increase of 28.72% over the past year. Additionally, the CAT stock price jumped by approximately 1.77% year to date. These trends collectively indicate the challenges faced by Caterpillar stock.
Technical Analysis of Caterpillar Stock Price in 1-D Time Frame
At the moment, Caterpillar stock (NYSE: CAT) is below the 50 and 200-day simple moving averages (SMAs), which do not support the price trend. Sellers seem to be more aggressive as compared to buyers as of now.
The current value of RSI is 29.54 points. The 14 SMA is above the median line at 40.81 points, indicating that the Caterpillar stock is bearish.
The MACD line at -6.70 and the signal line at -4.31 are below the zero line. A bearish crossover is observed in the MACD indicator which signals more bearishness for the CAT stock price.
Analyst Take on Cat Stock Price
There is a mixed opinion among 26 analysts who follow Caterpillar stock. Almost 10 of them rate Caterpillar as a ‘Strong Buy,’ while 0 give it a ‘Buy’ rating. 12 of the analysts recommend holding the stock, and 2 of them advise selling it. Only 2 of the analysts have a ‘Strong Sell’ rating for Caterpillar.
Caterpillar stock has an average price target of $288.36, which implies a potential increase of 17.7% from its current price of $244.94. The price targets vary from a high of $365.00 to a low of $175.00.
Summary
Caterpillar stock price prediction suggests a mild bearish in the chart. The sellers are dominating on the higher levels. Caterpillar (NYSE: CAT) technical oscillators also support the bearish trend. The MACD, RSI, and EMAs are emphasizing negative signs and imply that the downtrend may continue in the CAT stock price. Caterpillar price action suggests that the investors and traders are bearish on the 1-day time frame. Technical analysis suggests that the Caterpillar stock price is in a bearish grip and the probability of testing the previous highs in the coming months is low.
Technical Levels
Support Levels: $240.00 and $230.00.
Resistance Levels: $261.00 and $266.45.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
