Honeywell Set to Raise the Heat

• Posted by Greg Harmon
• on June 9th, 2016

Honeywell ($HON) operates a diversified technology and manufacturing company. It makes airplane engines and sophisticated avionics but it will always bring to thermostat to mind for me. And speaking of the thermostat, Honeywell’s stock price is about to turn up the heat.

The chart below shows how the stock price went through a broad consolidation and chop in 2015 before racing to new highs after the February bottom. But since making an all time high April 19th, it entered another consolidation phase, this one much tighter. A brief dip under the 50 day SMA in May and it is right back at the April high Thursday.

As it hits resistance at 116.50 there are 4 positive signs that it will break the consolidation to the upside and continue. The first is the RSI moving above 60 again, a higher high. The next is the MACD has crossed as it hit zero and is rising and positive now. Third is the Bollinger Bands® opening to the upside. Finally and most important, the price itself is showing strong intraday action at it moves higher. A close at the top of the day Thursday will be a great sign of strength. A push and close over 116.56 can be used as a trigger.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through May 2016 and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus