HON closes within prior day's range
Honeywell International Inc. (HON) Technical Analysis Report for Jun 19, 2019 | by Techniquant Editorial Team
HON finished Wednesday at 175.41 losing $0.34 (-0.19%), slightly underperforming the S&P 500 (0.3%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HON as at Jun 19, 2019):
Wednesday's trading range has been $1.90 (1.08%), that's slightly below the last trading month's daily average range of $2.03. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HON.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 173.97 (S1). After having been unable to move above 176.43 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 176.15. The last time this happened on Monday, HON actually gained 1.97% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 176.43 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Honeywell International. Out of 41 times, HON closed higher 58.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 75.61% with an average market move of 1.67%.