Is Caterpillar Inc. Stock (CAT) Overbought or Oversold?

RSI analysis computed from CAT's daily closing prices · Data through August 31, 2026

Neutral Updated after each market close

As of August 31, 2026, CAT’s 14-day RSI is 40.5, inside the neutral 30–70 band — neither overbought nor oversold by the conventional thresholds.

RSI-14 Scale

0 · Oversold305070100 · Overbought

CAT reads 40.5 on the 0–100 scale.

The Supporting Picture

vs 50-Day MA

-7.0%

MA: $858.55

vs 200-Day MA

+22.4%

MA: $652.24

From 52-Wk High

-25.0%

High: $1064.42

Volume vs 20-Day Avg

-16%

Avg: 2.1M shares

The 50-day average is currently above the 200-day average, which technicians read as a longer-term uptrend backdrop for the RSI reading above.

What's Behind the Reading

August 28, 2026

Caterpillar's RSI of 40.85, while neutral, is on the lower end, suggesting a period of subdued momentum. The stock is trading 6.6% below its 50-day moving average and 24.84% below its 52-week high. This indicates a sustained period of downward pressure or a lack of strong buying interest. Despite this, the company reported impressive Q2 2026 results on August 4, 2026, with EPS of $8.17, significantly surpassing estimates, and record quarterly revenue of $20.5 billion. The company also saw a significant increase in its backlog. However, Baird reiterated a "Neutral" rating, citing that Q2 performance metrics reached historic highs that are unlikely to sustain, and that the stock appears overvalued. This mixed sentiment, with strong earnings but concerns about sustainability and valuation, could explain the current neutral-to-weaker momentum.

Recent Overbought / Oversold Episodes

How CAT behaved the last few times RSI left the neutral band — including its return over the 5 trading days after each episode ended.

Episode Period Next 5 Days
overbought June 29, 2026 – July 1, 2026 -5.4%
overbought February 6, 2026 – February 17, 2026 +0.5%
overbought February 2, 2026 – February 3, 2026 +5.6%
overbought December 10, 2025 – December 11, 2025 -9.6%

Past behavior does not predict future results — small sample sizes especially.

Frequently Asked Questions

Is Caterpillar Inc. (CAT) overbought right now?
Based on the latest close, CAT's 14-day RSI is 40.5, which is in neutral territory — neither overbought nor oversold. RSI above 70 is considered overbought; below 30, oversold. This is recalculated every trading day.
What is RSI (Relative Strength Index)?
RSI measures the speed and size of recent price changes on a 0–100 scale over 14 trading days, using Wilder's smoothing. Readings above 70 suggest a stock has risen quickly relative to its recent range; below 30, fallen quickly.
Is an overbought stock a sell signal?
Not by itself. Strong stocks can stay overbought for weeks during uptrends, and oversold stocks can keep falling. Most traders combine RSI with trend context — like the 50- and 200-day moving averages shown above — plus volume and fundamentals rather than acting on RSI alone.
How often is this page updated?
Indicators are recomputed after every market close from daily closing prices, and the AI commentary refreshes each trading evening. The data date shown above is August 31, 2026.
Where does this data come from?
Daily closing prices come from our market data feed, and every indicator on this page is computed directly by us from that price history. The overbought/oversold verdict is a mechanical calculation, not an opinion.

Methodology

The verdict on this page is mechanical: we compute the 14-day Relative Strength Index with Wilder’s smoothing from CAT’s daily closing prices, and apply the conventional thresholds — above 70 is overbought, below 30 is oversold. Moving averages, the 52-week range, and volume comparisons come from the same price history.

Indicators are recomputed after every market close. The AI commentary adds context from current news via grounded search, but never changes the computed verdict. Note: closes are as-traded; a stock split would distort readings for a few weeks until the window rolls past it.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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