Honeywell International (HON) is a diversified technology and manufacturing company that I last reviewed on A pril 27. At that time I wrote, "Today I will be watching to see if HON makes a two-day reversal -- a low close Wednesday followed by a high close Thursday. If that happens I would recommend purchases above $201.41."
Let's review Honeywell's charts again to see how its shares are performing.
In this updated daily bar chart of HON, below, I can see that prices did make a two-day reversal. Prices retested the April low in late May and have resumed their uptrend. HON trades above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line has been steady/firm since October. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of HON, below, I can see that prices have made a large upper-level base pattern going back over the past two years. Prices are now trading above the rising 40-week moving average line. The weekly OBV line has been creeping higher the past four months or so. The (MACD) oscillator recently crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of HON, below, I can see a potential upside price target in the $245 area.
In this weekly Point and Figure chart of HON, below, I can see an upside price target in the $231 area. A trade at $231 will break above the highs of 2021 and be a more important upside breakout.
Bottom line strategy: Traders who are long HON should continue to hold. Risk to $197 for now. The $245 area is my price target for now.
