Caterpillar Inc. $CAT has been in a period of consolidation/correction in 2018 since it failed to clear above $173 a share in January. Price has come down to tag $130 in August before the recent upswing back above $155. This upswing is a possible bullish continuation breakout, which means the pressure is back towards the $173 high.CAT Daily Chart(click to enlarge)Bullish Breakout:- In the daily chart, we can see that price has been choppy and slightly bearish throughout the year .- We can see it was in a falling channel.- Price even broke below the moving averages, and then respected them as resistance. This was a bearish since back in July/August. - After the bearish slingshot, price did make a new low, but rebounded immediately. There was a bullish divergence between the RSI and price. - What followed was a strong bullish swing that broke through the moving average cluster, above the multi-month high around $147, and above the falling channel resistance. - The RSI broke above 70, which signals revival of bullish momentum. - We can say this is a bullish continuation breakout because price action was bullish entering 2018, so a bullish breakout from the 2018 consolidation could mean return to the pre-2018, bull-trend. - The bullish scenario has $173 in sight with a break potential break above to at least test $180. - I think if price pulls back, we should anticipate support in the $150-$152 area, assuming this is indeed a bullish continuation breakout.- Even a pullback to $140 could be within the medium-term context of a bullish continuation attempt. - A break below $140 on the other hand would suggest further consolidation/bearish correction.