HON finds support at 50-day moving average
Honeywell International Inc. (HON) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HON finished the month 3.31% higher at 149.37 after edging higher $0.21 (0.14%) today, underperforming the S&P 500 (0.77%). Trading up to $1.92 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 31, 2020):
Friday's trading range has been $2.47 (1.66%), that's below the last trading month's daily average range of $3.08. 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 lower than usual for HON.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the In-Neck Pattern.
After trading as low as 147.00 during the day, the market found support at the 50-day moving average at 148.21. The last time this happened on June 15th, HON gained 1.69% on the following trading day.
Honeywell International shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Honeywell International. Out of 52 times, HON closed higher 59.62% 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 71.15% with an average market move of 1.36%.