In our previous analysis on CAT stock price we talked about the possibility of a head and shoulders bearish pattern. Bulls tried to bounce price higher but they were unable to form a right hand shoulder to complete our expected pattern. Instead price broke below the neckline support at $195.90.
CAT stock price is in a bearish short-term trend. Price is vulnerable to more downside towards $180 at least. As long as price is below $207, bears remain in control of the trend. Price is challenging the summer lows. The chances favor price breaking below $187. We remain pessimistic for CAT stock price.
