Turning up the heat (and profits) on your portfolio with Honeywell

• Posted by Greg Harmon
• on April 12th, 2016

Honeywell ($HON) is a diversified manufacturing and technology company making tings as complex as aircraft engines as well as the thermostat on your wall. And the mix is serving them well. The stock price is up over 200% since making a low in 2011 and over 20% since the January low 3 months ago. The chart of the stock price, needless to say, looks good. But even the most recent price action warrants a look for adding this stock to your portfolio.

The chart below shows the last 6 months. After a sideways action through the end of the year the price pulled back with the market in January to the low mentioned earlier. Since then the price has risen against rising trend support mirroring the 20 day SMA with a one day exception at the end of February. The last 3 weeks have seen consolidation in that uptrend under 113.25, which is proving to be resistance.

The rest of the information on the chart sets up for a positive move out of that consolidation. Momentum has held bullish as the price moves sideways. The RSI remains in the bullish zone and the MACD has leveled in positive territory. Should it cross back up through the signal line that would add even more weight to the upside case. There was a Golden Cross at the start of March as well. A break of the price up over resistance would give a Measured Move to 124 against that ‘oops’ at the end of February. And the stock sports a 2.1% dividend yield while you are watching it go. What more do you need to dial up the value of your portfolio.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through March 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