Honeywell International Inc. (HON) has rallied to new highs recently after two successful tests of the rising 50-day moving average line.
Most of our other technical studies are aligned on the upside so let's check and see what price targets we might be able to project.
In this updated daily bar chart of HON, below, we can see a strong rally the past nine months with a couple consolidations from an October nadir. Prices are above the rising 50-day moving average line. The 200-day moving average line has had a positive slope the entire time and the On-Balance-Volume (OBV) has confirmed the rally with its own new highs. The rising OBV line tells us that buyers of HON have been more aggressive with heavier volume being seen on days when HON has closed higher. There is a May-July bearish divergence from the momentum indicator (bottom panel on this chart) but I don't anticipate that it is a serious near-term issue.
In this weekly bar chart of HON, below, we can see that prices above the rising 40-week moving average line. Compared to the past three years, HON may be considered too far above the 40-week line and thus vulnerable to a correction. The weekly OBV line shows a nice steady advance the past three years which could represent many months of accumulation (buying). The weekly Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it is poised to cross to a take profits sell signal.
This Point and Figure chart of HON, below, shows both the impressive rally that HON has achieved and the next price target of $140.73 -- not far off. Price targets can become resistance areas if enough traders and investors take profits in that price zone. We'll have to watch.
Bottom line -- HON has been in a strong uptrend. We have a nearby price target in the $140-$141 area but $150 is the next round number. Traders should stay long and raise sell stop protection to a close below $131.