We looked at Honeywell International Inc. (HON) just about a month ago, where we said, "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."
Prices had reached $147 -- close enough to $150 for government work, as they say. Let's see if any signals have been triggered in the past four weeks.
In this daily bar chart of HON, above, covering the past twelve months of activity, we can see that long and durable uptrend. Prices are above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has risen steadily in the past twelve months to confirm the advance. In the past month, however, the rate of the advance has slowed. This slowing can be seen from the lower highs on the 12-day momentum study at the bottom of the chart.
In this weekly bar chart of HON, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is in a smooth uptrend and suggests that buyers are more aggressive than sellers on this timeframe. The weekly Moving Average Convergence Divergence (MACD) oscillator is above the zero line, as it has been all year, but the two moving averages that comprise the indicator are starting to narrow and this could become a take-profits sell signal.
In this Point and Figure chart of HON, above, we can see that prices have met an upside price target. Prices could continue higher, but a period of sideways consolidation would be welcomed.
Bottom line: HON is still in an uptrend, but momentum slowed last month. Traders could raise their sell stops to a close below $140 from a close below $136.