This industrial giant could be about to break out, charts show

Shares of Caterpillar (CAT) have stalled out in recent weeks, pounding out a sideways consolidation phase just below the 200-day moving average. We're noting a confluence of indicators that suggests a move above $355 could signal a new uptrend phase with an upside target above $400. After a significant rally off the April low, CAT pushed higher into early May when the European tariff news caused shares to gap up to the 200-day moving average. For the past three weeks, the price has remained in a tight trading range between the 200-day moving average around $355 and the upper end of the price gap from early May. That $355 level also represents a 61.8% retracement of the downtrend from the January peak to the April low, creating a "confluence of resistance" where multiple indicators line up