Honeywell International Inc. (HON) is expected to report earnings on Thursday before the market opens. After the close of trading Monday the company disclosed that its board authorized the repurchase of as much as $10B of its common stock, including approximately $2.1B remaining under its previously announced $10B buyback program. HON is trading higher in early action Tuesday.
Let's check out the position of the charts and indicators to see how traders might be positioned.
In the daily bar chart of HON, below, I can see that the shares have behaved on the weak side recently but the indicators have been relatively strong. HON declined from early December to the middle of March. The stock spent about eight weeks trading below the 200-day moving average line but it is back above it now. The slope of the 200-day line has remained positive. HON is trading above the declining 50-day line.
The On-Balance-Volume (OBV) line has stayed steady as a rock since December despite the price decline. This tells me that HON "fell of its own weight" and traders were not aggressive sellers of the stock. The Moving Average Convergence Divergence (MACD) oscillator has edged above the zero line recently for an outright buy signal.
