HON finds buyers at key support level
Honeywell International Inc. (HON) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
HON ended Thursday at 174.54 gaining $0.08 (0.05%), slightly underperforming the S&P 500 (0.23%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HON as at Jul 11, 2019):
Thursday's trading range has been $1.79 (1.02%), that's slightly below the last trading month's daily average range of $1.89. 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.
Two candlestick patterns are matching today's price action, the Homing Pigeon and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on December 10, 2018, HON actually lost -0.83% on the following trading day.
After trading down to 173.24 earlier during the day, the share bounced off the key technical support level at 173.64 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Honeywell International. Out of 26 times, HON closed higher 53.85% 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 65.38% with an average market move of 0.86%.