HON finds buyers at key support level
Honeywell International Inc. (HON) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HON ended Wednesday at 170.00 gaining $1.70 (1.01%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 169.99, the share confirmed its breakout through the prior session high after trading up to $1.37 above it intraday.
Daily Candlestick Chart (HON as at Sep 16, 2020):
Wednesday's trading range has been $2.88 (1.7%), that's slightly below the last trading month's daily average range of $3.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HON.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 168.48 earlier during the day, the stock bounced off the key technical support level at 168.70 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 1st, HON gained 2.68% on the following trading day. After having been unable to move lower than 168.07 in the previous session, the market found buyers again around the same price level today at 168.48.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 173.82, upside momentum might accelerate should Honeywell International mark new highs for the month.
Among the five 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 228 times, HON closed higher 57.89% 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 60.96% with an average market move of 0.76%.