HON closes within prior day's range after lackluster session
Honeywell International Inc. (HON) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HON finished the week 3.15% higher at 180.81 after gaining $0.69 (0.38%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HON as at Feb 14, 2020):
Friday's trading range has been $1.88 (1.04%), that's below the last trading month's daily average range of $2.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HON. Prices continued to consolidate within a tight trading range between 178.69 and 181.86 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 179.11 (S1). Unable to break through the key technical resistance level at 181.34 (R1), the market closed below it after spiking up to 181.86 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, HON actually gained 1.13% 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 178.69 where further sell stops might get triggered. With prices trading close to this year's high at 184.06, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Honeywell International. Out of 223 times, HON closed higher 60.54% 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 62.33% with an average market move of 0.91%.