In his first Executive Decision segment of Tuesday's "Mad Money" program, Jim Cramer spoke with John Waldron, president and CEO of Honeywell International's (HON) Safety and Productivity Solutions division, along with musician and tech entrepreneur will.i.am to discuss the collaboration that led to Xupermask, a new face covering that features both ventilation and filtration with dual replaceable H12 HEPA filters.
Will.i.am said the inspiration for the Xupermask came from his own experience of needing a high-quality mask that offered safety but also style. He said the futuristic design of Xupermask comes straight from the Hollywood designers who helped outfit Spiderman and Black Panther. Waldron said Honeywell was able to take will.i.am's designs and pair them with Honeywell's engineering expertise.
Will.i.am said he expects masks will be around long after COVID-19, as they are in many Asian countries. The Xupermask will be available this week at Xupermask.com.
Let's check out the charts of HON again. We looked at HON back on Feb. 5 and wrote, "HON has rolled over the past three months. Our daily Point and Figure chart has a downside price target and a number of indicators have weakened. Traders should keep their stop loss orders at $194. A pullback to the $180-$170 area is likely." As things turned out the pullback never materialized and prices grinded to new highs, almost reaching the weekly Point and Figure target of $227.
Let's see how things look now.
In this updated daily bar chart of HON, below, we can see that prices have eked out a new high for the move up but the overall volume pattern and the On-Balance-Volume (OBV) line are not exactly on the same page. Prices are above the rising 50-day and the rising 200-day moving average lines. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line last month for an outright buy signal but the indicator is not showing much in the way of trend strength.
In this weekly Japanese candlestick chart of HON, below, we can see a longer-term uptrend for the stock. Prices are above the rising 40-week moving average line. The two most recent weekly candles look like very small spinning tops. These are potential top reversals and tell us there is a balance between bulls and bears as the real bodies are very small. Neither bulls nor the bears were able to move prices far from the opening of the week. The OBV line shows some weakness the past four months, suggesting that sellers of HON have been more aggressive on the advance. The MACD oscillator has narrowed and could go up or down for a buy or continued weakness.
In this daily Point and Figure chart of HON, below, we can see a potential upside price target of $239 but also that a trade at $207.51 could weaken the picture.
In this weekly Point and Figure chart of HON, below, we can see a tentative longer-term price target in the $252 area.
Bottom line strategy: Not everything on the charts is bullish but prices have traded higher. Traders who are still long should raise sell stops to $205 from $194. The Point and Figure charts suggest there are more gains ahead.