Caterpillar's stock (CAT) skidded after reporting a profit of 3.18 per share, passing estimates of $3.03, on sales of $14.2 billion, passing estimates of $14 billion, with the stock nonetheless sliding 5.82%, or 11.35 points, and settling at 183.51, with trading volumes surpassing 8 million shares, above 10-day averages of 3 million shares.
The stock declined after facing resistance from the 50-day SMA, while the RSI reached overbought levels, doubling pressures on the stock, amid the dominance of the main downward medium-term trend, with negative signals from the RSI.
Therefore we expect more losses for the stock, targeting the support of 169.30, provided the resistance of 199.50 holds on.
Expected trend for today: Bearish