HON ends the day indecisive
Honeywell International Inc. (HON) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HON finished Monday at 143.49 gaining $1.04 (0.73%), strongly outperforming the S&P 500 (-0.94%). Trading $2.30 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HON as at Jul 13, 2020):
Monday's trading range has been $3.63 (2.53%), that's slightly below the last trading month's daily average range of $3.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HON.
Four candlestick patterns are matching today's price action, the Gravestone Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
The market managed to close back above the 100-day moving average at 142.76. After spiking up to 145.88 during the day, Honeywell International found resistance at the 20-day moving average at 144.43. The last time this happened on May 12th, HON lost -3.62% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 140.90 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 137.53.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Honeywell International. Out of 22 times, HON closed higher 77.27% 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 72.73% with an average market move of 1.59%.