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Is Honeywell Starting to Give You a Fear of Heights?

Here's what the charts say about this stock as it's gone way up.
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Honeywell International (HON)   -- a diversified manufacturing and technology company -- has seen its stock price soar in recent weeks. Let's check out the charts to see if we should part ways or stay on for further gains.

In this daily bar chart of HON, below, we can see that prices have rocketed higher by some $45/share in just a few weeks. HON has quickly rallied above the 50-day and the 200-day moving average lines. The trading volume has increased and the On-Balance-Volume (OBV) line has turned strong. The Moving Average Convergence Divergence (MACD) oscillator has turned bullish.

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In this weekly Japanese candlestick chart of HON, below, we can see some sharp improvement in recent weeks. Prices have rallied above the now bottoming 40-week moving average line. Trading volume has increased in the past two or three weeks. The weekly OBV line has turned higher. The MACD oscillator has crossed to a cover-shorts buy signal and is close to an outright buy signal.

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In this daily Point and Figure chart of HON, below, we can see an upside breakout from a base pattern. Here the software is showing a price target in the $274 area.

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In this weekly Point and Figure chart of HON, below, we can see a price target in the $305 area. Impressive.

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Bottom line strategy: HON has rallied in dramatic fashion and that makes me a little cautious. Traders who may be long HON should raise their sell stops and/or book some profits.

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