CAT Shares Plummet Amid Profit-Taking and Power Generation Concerns

Caterpillar shares are trading near $817 after a significant pullback of nearly 5% this week, with downside momentum building into oversold territory.

The company reported record quarterly results, including its first $20 billion quarter and annual revenue of $67.59 billion with net profit of $8.88 billion.

However, the recent share volatility was fueled by profit-taking after the earnings rally and ongoing scrutiny over power generation demand.

Techincal signals point to stretched weakness, with support levels coming into focus as volatility remains elevated.