After soaring to a new all-time high in August 2023, Caterpillar stock (NYSE: CAT) price appears to have ended its correction period. During this pullback, the price dropped 23.7% which can be considered a decent correction for such a high-cap stock.
Just as the Q2 earnings marked the top for the CAT stock, the Q3 earnings appear to have confirmed its bottom. The stock has risen 9.46% since the construction and engineering firm reported its third quarterly results.
On the basis of technical analysis, $245 seems to be a very critical level on the chart. Bulls have struggled to gain above this level since the start of this year. However, the price is now trying to flip this level into support which could be very bullish for Caterpillar stock price forecast.
Caterpillar Stock Price Technical Analysis
The NYSE: CAT chart below shows a fakeout below the $231 support level. Although bears managed to close a day below this level, the bulls stepped in immediately to regain control. This move was fuelled by the Q3 earnings from CAT which showed a 12% increase in the quarterly revenue on a YoY basis.
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