Stock of the day: Honeywell

By Tomasz Wisniewski|

Published: September 30 2022, 10:55 GMT+0

Stock of the day: Honeywell

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In the last stock of the day analysis of the month has us coming back to Honeywell, which we previously analysed at the end of February. Back then, we were highlighting the possibility of a bullish reversal based on the bounce of an important support:

“If the price will close a week above the orange area, that will be a great buy signal for the forthcoming weeks. In case the price will drop and the hammer will not be created, we will have a signal to sell. Today’s session is crucial.”

It was a great call because the next 8 weeks were bullish and the price managed to reach a 205 USD resistance at the beginning of May. Now let’s look at the weekly chart here and update the current situation.

Honeywell is inside of the wedge pattern and is currently on the way to test its lower line. What can be interesting is that the price is currently testing the 50% Fibonacci with a chance for a double bottom formation. Of course, it is a bit too early to claim this formation but it is worth keeping it at the back of your mind.

Any serious bullish price action in this area can be considered a signal to buy. On the other hand, the price breaking the lower line of the wedge will be an invitation to sell. As for now, it doesn’t look good for buyers but things could change rapidly. I guess next week will be crucial here so keep your eye on Honeywell and on what’s happening on the 50% Fibo support.

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