HON slumps, losing $7.34 (-4.35%) within a single day
Honeywell International Inc. (HON) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HON finished Monday at 161.36 tanking $7.34 (-4.35%), strongly underperforming the S&P 500 (-1.16%). This is the biggest single-day loss in over three months. Today's close at 161.36 marks the lowest recorded closing price since August 24th.
Daily Candlestick Chart (HON as at Sep 21, 2020):
Monday's trading range has been $6.59 (4.0%), that's far above the last trading month's daily average range of $3.87. Weekly volatility is also higher, being 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 Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on July 23rd, HON actually lost -2.80% on the following trading day.
After trading as low as 158.59 during the day, the share found support at the 50-day moving average at 158.88. The market closed below the 20-day moving average at 166.52 for the first time since August 4th.
Although Honeywell International is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 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 53 times, HON closed higher 58.49% 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 71.70% with an average market move of 1.47%.