Honeywell International Inc. (HON) is still going strong on the charts. Let's check them out ahead of the early close.
In this daily bar chart of HON, below, we can see a strong rally from the late December nadir. Prices have only made a couple relatively shallow dips or corrections in the past six months. HON is above the rising 50-day moving average line, and well above the positively sloped 200-day moving average line. A bullish golden cross of the 50-day and the 200-day lines can be seen in March. Volume looks like it has slowed from April, but the On-Balance-Volume (OBV) line shows a steady rise from the beginning of the year.
A rising OBV line only happens when the trading volume is heavier on days when the stock closes higher. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly bar chart of HON, below, we can see an impressive rise from late 2016. Prices are above the rising 40-week moving average line. The weekly OBV line has a positive trend the past three years and the MACD oscillator is bullish.
In this Point and Figure chart of HON, below, we can see a potential upside price target in the $205 area.
Bottom line strategy: Investors who are long HON from lower levels should consider raising stop protection to a close below $165. Short-term traders could go long with a stop below $169. The $200-$205 area is our anticipated price target.
HON is a holding in Jim Cramer's Action Alerts PLUS member club.