HON rises to highest close since April 30th
Honeywell International Inc. (HON) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HON ended the week 10.98% higher at 139.18 after gaining $1.49 (1.08%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 139.18 marks the highest recorded closing price since April 30th. Trading up to $1.02 lower after the open, Honeywell International managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 138.79, the share confirmed its breakout through the prior session high after trading up to $0.55 above it intraday.
Daily Candlestick Chart (HON as at May 22, 2020):
Friday's trading range has been $2.89 (2.1%), that's below the last trading month's daily average range of $4.30. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HON.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 136.11 (S1). After having been unable to move lower than 136.29 in the previous session, the stock found buyers again around the same price level today at 136.45. The last time this happened on May 11th, HON actually lost -4.98% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test April's nearby high at 147.87.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Honeywell International. Out of 562 times, HON closed higher 52.49% 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 62.28% with an average market move of 0.65%.