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- 1 Caterpillar stock price stock holds $260.00 and is reversing upward.
- 2 CAT stock price is in a short-term correction phase.
- 3 Caterpillar Inc. is expected to release its quarterly earnings on October 26, 2023.
Caterpillar Inc. CAT stock price corrected approximately 10% from the recent swing high and returned back to its breakout level. It seems to be in a short-term correction phase and declining by forming lower low swings.
Caterpillar stock price drops below the 50-day EMA showcasing that the short-term trend has reversed down. However, the price still holds the 200-day EMA which will act as a strong support for bulls.
In the last two months, CAT stock price consolidated in the wide range between $270.00 to $293.88. Investors expected that the stock would break out of the higher range and hit a new 52-week high.
However, the market had its own surprises so, CAT shares declined and slipped below the below range. Currently, $258.00 is acting as immediate support and buyers are trying to push the price to the previous range.
If the Caterpillar stock price declines further and breaks the $258 level, then a 5% to 7% fall may come in October. Caterpillar stock price closed the previous session at $266.04 with an intraday rise of 2.01%. The market capitalization stands at $135.72 Billion.
CAT Stock Price Prepares to React in Quarterly Earnings
CAT stock price lost bullish momentum and showed a minor profit booking after hitting the 52-week high.
However, the quarterly earnings of Caterpillar Inc. are scheduled for October 26, 2023. The volatility may rise in the coming weeks so investors must remain cautious. Equity Analysts estimated an EPS of 4.733 and revenue of $16.518 Billion. If Caterpillar succeeds in beating the earnings estimates, then the downfall in CAT stock might take a halt.
However, if the company disappoints, then the 200 EMA support will be at risk. The technical analysis suggests Caterpillar share price is expected to react positively after earnings.
Caterpillar Stock Price Erodes Previous Gains
Caterpillar stock price erodes the gains generated in the last two months. However, at the time of writing, the stock price is near the crucial support. So, sellers may face difficulty in pulling the price further down.
Till the CAT stock price sustains above $258.00, a short-term pullback rally is expected. The MACD curve is reversing upward indicating mild bullishness but the histogram bar is red and shows divergence. The RSI at 41 pointing north denotes strength and the presence of buyers.
Conclusion
Caterpillar Inc. CAT stock price corrected approximately 10% after hitting the 52-week high.
The price pattern is mildly bearish but the stock is near the crucial support and likely to respect the 200-day EMA support. The analysis suggests that Caterpillar stock price is expected to recover after earnings.
Technical Levels
- Resistance Levels: $280.00 and $294.16
- Support Levels: $258.27 and $239.83
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
