HON closes within previous day's range after lackluster session
Honeywell International Inc. (HON) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HON ended Tuesday at 174.78 losing $0.23 (-0.13%), but still slightly outperforming the S&P 500 (-0.34%). Trading $0.79 higher after the open, Honeywell International was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 2nd, HON actually gained 1.01% on the following trading day. 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 16, 2019):
Tuesday's trading range has been $1.47 (0.84%), that's below the last trading month's daily average range of $1.97. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for HON.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 173.64 (S1). After having been unable to move lower than 174.53 in the prior session, the market found buyers again around the same price level today at 174.32.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 173.24 where further sell stops might get activated. With prices trading close to this year's high at 178.47, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Honeywell International. Out of 395 times, HON closed higher 59.75% 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 65.57% with an average market move of 0.90%.