CAT is trending lower and has been since it reached a 2-year high last July. However, the stock is quickly approaching key support, now less than 3% away.
That support has been intact since the summer of 2012, or almost 3 years. There is zero guarantee it will hold if reached, but it led to a bounce last month and belongs on watch in case this area holds again.
Here’s a chart:
With IV rank at 49% and multi-year support coming into view, puts have become a bit richer. A lasting turn will take time even if it happens, but the big test appears nigh.