In late September, we saw a bullish breakout in Caterpillar Inc. $CAT as price pushed above a falling channel/wedge. Caterpillar Inc. (CAT) in a Bullish Continuation BreakoutCAT Daily Chart(click to enlarge)Breakout Respected:- As we can see on the daily chart, price action was bullish and strong in September, breaking above the moving averages and the channel/wedge resistance.- We also saw the RSI push above 70, which shows establishment of bullish momentum.- So far, that bullish momentum is still in play as the RSI again heads back up towards "overbought" levels. In a bullish market, the "overbought" levels simply reflect strength in bullish momentum. - Price tested the $150 handle, and essentially tested the falling resistance as support. CAT also stayed above the moving averages.- Tuesday's (10/2) bullish engulfing candle is a sign that at least in the short-term, we still have bullish bias and momentum. - The bullish outlook should be limited to $161.50 for now. I think we will get a stronger correction once price gets to this key resistance that held several times in the middle of 2018.