Catepillar $CAT has been in consolidation since finding resistance around $173 in January 2018. The daily chart shows the initial dip that eventually settled into a range between roughly 138 and 160.CAT Daily Chart(click to enlarge)Bearish Momentum vs. Support:- In 2018 we can see that the RSI has dipped to 30 and then held mostly under 60, other than the brief time in the middle of May.- This suggests a maintenance of the bearish momentum.- We also see that the bearish swings have be sharper than the bullish attempts.- Finally, price fell below the 200-day simple moving average (SMA) this week.- These are signs that bulls are giving up, and bears are in control.- We might see some short-term support here at the $138-$139 support, but I would not rely on any strong rebound here.- More likely, the bearish momentum will take CAT below the $138 support.- A break below the $138 level might send CAT towards the $120 level. - CAT might have entered a prolonged period of consolidation after the strong 2-year rally from 2016 to 2018. - I would not be surprised if CAT is still in correction or sideways consolidation mode by mid-2019. - At this point, I would be very surprised if price rebounds and climbs above $150 a share, which warrants reassessment of the bearish correction scenario. CAT Weekly Chart(click to enlarge)