Honeywell's Charts Look Sticky to the Upside
Here are the prices to watch as this industrial goods giant climbs higher.
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Honeywell International HON is an industrial goods and machinery company and its charts look ready to trade higher.
Let's check it out.
In this daily bar chart of HON, below, I can see that prices have clearly broken out to new highs, clearing resistance in the $210 area. Prices are trading firmly above the rising 50-day moving average line and above the rising 200-day line.
The trading volume has surged higher to confirm the upside breakout. The On-Balance-Volume (OBV) line has moved up to a new high and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero-line.
In this weekly Japanese candlestick chart of HON, below, I see a large base formation. Prices trade above the rising 40-week moving average line. A weekly close above $220 is an important breakout. The most recent candlestick bar has an upper shadow telling us that traders rejected the highs. A strong (white) candle this week will refresh the uptrend. Prices trade above the rising 40-week moving average line. The weekly OBV line is starting to improve. The MACD oscillator is above the zero-line and rising.
In this daily Point and Figure chart of HON, below, I can see that prices made an upside breakout. A price target in the $269 area is being projected.
In this weekly Point and Figure chart of HON, below, I can see a price target in the $265 area.
Bottom line strategy: Traders could go long HON at current levels and on a shallow dip. Risk to $205. The $265 area is my price target for now.
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