• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

Honeywell Shows What an Uptrend Looks Like

The uptrend in HON has been a work of beauty.
By BRUCE KAMICH
Oct 06, 2017 | 08:25 AM EDT
Stocks quotes in this article: HON

I looked at the charts and indicators of Honeywell International Inc. (HON)  towards the end of July. We had a bullish story noting that "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."

Prices have passed our $140-$141 target and are closer now to the round number of $150. What sort of strategy is good now? Where would we recommend a sell-stop now? Let's get into the charts and indicators.

In this daily bar chart of HON, above, we can see the steady rise in the share price over the past 12 months. There are a number of sideways to higher consolidations along the way, and one shallow correction in March and April.

Aside from breaking the rising 50-day moving average line in April, the uptrend has been a work of beauty. I cannot really see that the volume of trading has expanded on the advance, but I can see that the On-Balance-Volume (OBV) line has been rising and confirming the price gains.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line over the past year, except for October and early November and a short dip in April.

In this weekly bar chart of HON, above, we can see that prices are above the rising 40-week moving average line. The slope of the line has been positive for much of the past three years.

The weekly OBV line has been trending higher the past three years and signals aggressive buying and accumulation for an extended period of time. The weekly MACD oscillator has been in a bullish mode since November, and is turning up again to a fresh go long signal.

In this longer-term weekly Point and Figure chart of HON, above, we can see the straight up rise and a new longer-term price target of $219. Wow. Again $150 is a round number and so is $200.

Bottom line: because HON has taken its time and not rushed higher, we do not have the kind of overbought extremes seen on other stocks lately. Sell-stops could be raised to a close below $136 to try to lock in more gains. Stay long, and let's see how prices behave when we reach $150.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Energy | How-to

More from Energy

From Wall Street to Fantasy Island

Jim Collins
May 27, 2022 12:25 PM EDT

So, let me get this straight -- costs are rising, units are declining, and yet earnings are going to grow? Yeah, right.

Raising HAL

Bruce Kamich
May 26, 2022 3:43 PM EDT

Shares of Halliburton have the energy to make new highs, according to the charts.

Investing in Fantasyland Will Only Earn You Fantasies

Jim Collins
May 26, 2022 12:25 PM EDT

Here are the areas I'm buying, and here and the areas of which I'm turning away in disgust.

The Charts Map a Route to Phillips 66

Bruce Kamich
May 26, 2022 11:42 AM EDT

Shares of PSX have made an upside breakout, so investors can step on the gas.

Teekay Tankers Breaks Out of a Large Base Formation

Bruce Kamich
May 26, 2022 9:03 AM EDT

The technical signs for the marine energy transportation and storage company are flashing positive.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "The Tremendous Power of the Sell Button"
  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login