Caterpillar (NYSE: CAT) is a leader in manufacturing articulated trucks, backhoe loaders and excavators. The stock is being dumped on the bigger timeframes, something you would not be aware of if you did not analyze the bigger timeframes.
We might have thought that Caterpillar (NYSE: CAT) stock would not pull back to the solid weekly supply imbalance created last June 2021 at around $234 per share, but last April 2012, the stock reached the imbalance and has dropped heavily ever since.
A new supply imbalance has been created at around $213 per share. Will Caterpillar (NYSE: CAT) pull back to the new imbalance recently created at around $213? We will see. There is a clear short bias for Caterpillar right now. No buying the dip, using bearish strategies to sell this stock or waiting for the correction to the weekly imbalance.
Watch Caterpillar (NYSE: CAT) stock price video analysis recorded last week.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances for Caterpillar (NYSE: CAT) stock.
Trading Caterpillar (NYSE: CAT) stock supply and demand imbalances are ideal for beginners and those with a full or half-time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings, and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
You should not worry about fundamentals or earnings announcements unless you are doing very short-term trading and scalping.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) for Caterpillar (NYSE: CAT) stock if you are in a country where it’s allowed.
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