This chart shows a key part of the 'Trump trade' may still have some life left

A Caterpillar excavator sits outside the Altorfer Cat dealership in East Peoria, Illinois.
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Industrial stocks faded after rallying hard last fall as a key part of the Trump trade, and now one chart analyst says it may be time to give the group another look.

"A lot of our weekly and tactical indicators are starting to get oversold," said Robert Sluymer, technical strategist at Fundstrat Global Advisors.

The trend is bigger than the promise from President Donald Trump that he would spend heavily on infrastructure, and Sluymer said the sector was already moving higher before Trump's election.

"I think it's more about the macro reflation trade. All these stocks bottomed in the first quarter 2016. And I think this is a much bigger theme. That theme looks like it could have another move to the upside," he said.