• 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
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • 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

Honeywell Might Keep the Dow Buzzing

Traders and investors could go long HON as it joins the DJIA club.
By BRUCE KAMICH
Aug 26, 2020 | 01:47 PM EDT
Stocks quotes in this article: HON, RTX, BA

In a column this week, Jim Cramer looked at Raytheon Technologies (RTX)  getting swapped out of the Dow Jones industrial average by long-time Cramer favorite Honeywell (HON) .

Cramer said this change was the least surprising of those announced, as Raytheon's merger with parts of the old United Technologies made it too similar to another Dow component, Boeing (BA) . Honeywell, on the other hand, is an innovation machine in a host of synergistic industries. Cramer called the company a true industrial.

Let's check out the charts of HON.

In this daily bar chart of HON, below, we can see that prices have been "saw-toothing" higher from the March low. Prices are above the rising 50-day moving average line and recently above the bottoming 200-day moving average line. The trading volume has been active since March and the On-Balance-Volume (OBV) line has been moving higher with the price action. A rising OBV line tells us that buyers of HON are being more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator shows a bullish trend from late May. 

 
 
In this weekly bar chart of HON, below, we went back four years. The chart shows a widening pattern or better known as a broadening pattern from 2017. HON has made higher highs and lower lows the past three years. If the pattern holds we should see HON go on to make a higher high this year. Prices are above the bottoming 40-week moving average line. The weekly OBV line has been steady since early 2019. The MACD oscillator is about to cross the zero line for a buy signal on this time frame. 
 
 
 
In this first Point and Figure chart of HON, below, we used daily price data and the chart shows a potential price target of $193.  
 
 
 
In this second Point and Figure chart of HON, below, we used weekly price data and here we can see a potential price target in the $257 area. 
 
 
 
 
 
Bottom line strategy: Traders and investors could go long HON or add to longs at current levels. Risk a close below $154 for now. $193 and then $257 are our price targets. 
 

(HON is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells this stock? Learn more now.)

 
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 prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Industrials | Mad Money

More from Investing

Lessons Learned in 1999 Could Come in Handy Right Now

Timothy Collins
Jan 25, 2021 9:30 AM EST

Today's hot market conjures up thoughts of two decades ago, and approaches to trading then could prove invaluable in the current environment.

2 More Covered Call Opportunities That Are Calling Investors

Bret Jensen
Jan 25, 2021 8:30 AM EST

Here are options plays involving promising small-caps Clearside Biomedical and Mustang Bio.

Momentum Is Proving More Powerful Than Overbought Readings

James "Rev Shark" DePorre
Jan 25, 2021 7:44 AM EST

Comments about how unsustainable the current market action is are hitting all-time highs, but strong, speculative trading is winning out for now.

Volatile Road Ahead, 4 Market Impact Thoughts, Monster Earnings Week

Stephen Guilfoyle
Jan 25, 2021 7:32 AM EST

What can be done? Well for one, we are going to have to be creative. Jay, and Janet, I need you both paying attention here.

Debt-Laden Chinese Electric Car Company Shares Soar

Alex Frew McMillan
Jan 25, 2021 7:00 AM EST

Property developer China Evergrande has seen shares in its electric car unit skyrocket before it enters commercial production.

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

  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • 08:04 AM EST GARY BERMAN

    Monday Morning Fibocall for 1/25/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 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