Honeywell International (HON) is expected to report earnings on Thursday before the market opens. Let's check out the charts and indicators.
In this daily bar chart of HON, below, I can see a strong rally in shares of HON that made a high in November. Prices have weakened in December and January. HON now trades below the declining 50-day moving average line.
The slower-to-react 200-day moving average line intersects just below $105 and could be tested in the days and weeks ahead. The trading volume has not slowed in the past few weeks and I consider that a negative.
The daily On-Balance-Volume (OBV) line has moved up from October but has "rolled over" in January. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but attempting to make a turn higher.
In this weekly Japanese candlestick chart of HON, below, I see weakness creeping in. Prices have failed at resistance in the $220 area. HON has weakened and is heading downwards towards its 40-week moving average line.
The weekly OBV line has been flat in December and January. The MACD oscillator is crossing to the downside for a take profit sell signal.
In this daily Point and Figure chart of HON, below, I can see that HON has reached a downside price target in the $201 area.
In this weekly Point and Figure chart of HON, below, I can see a downside price target in the $194 area.
Bottom line strategy: I have no special knowledge of what HON will tell shareholders on Thursday but the charts are soft and pointed lower.
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