HON closes below its opening price unable to hold early session gains
Honeywell International Inc. (HON) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
HON finished Wednesday at 173.21 gaining $0.66 (0.38%), slightly underperforming the S&P 500 (0.63%). Trading $2.02 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 Dec 04, 2019):
Wednesday's trading range has been $2.84 (1.63%), that's above the last trading month's daily average range of $2.25. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HON.
Prices are trading close to the key technical support level at 172.73 (S1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 178.57. The last time this happened on October 9th, HON gained 0.71% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 171.26 where further sell stops might get triggered.
Among the four 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 397 times, HON closed higher 59.45% 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 64.48% with an average market move of 0.77%.