HON closes within prior day's range after lackluster session
Honeywell International Inc. (HON) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HON finished Monday at 175.67 losing $0.92 (-0.52%), slightly underperforming the S&P 500 (-0.48%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HON as at Jul 08, 2019):
Monday's trading range has been $1.51 (0.86%), that's below the last trading month's daily average range of $1.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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.
Prices are trading close to the key technical resistance level at 176.43 (R1). After having been unable to move lower than 174.67 in the previous session, Honeywell International found buyers again around the same price level today at 174.80. The last time this happened on July 3rd, HON actually lost -1.01% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 174.67 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Honeywell International. Out of 293 times, HON closed higher 59.04% 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 61.77% with an average market move of 0.94%.