1 Honeywell International stock price closed at $196.41 while observing a loss of 5.69% during the intraday session. 2 HON stock slips below 20,50,100 and 200-day EMAs. 3 The year-to-date return of Honeywell International is -8.71%. HON stock price was in a bullish run since the ...
- 1 Honeywell International stock price closed at $196.41 while observing a loss of 5.69% during the intraday session.
- 2 HON stock slips below 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of Honeywell International is -8.71%.
HON stock price was in a bullish run since the formation of the support level at $191 level during the start of July. the stock price started to form higher highs and shatter the resistance level of $200. The bullish move was halted as soon as the price reached $210.50 and experienced strong rejection.
Honeywell stock retraced after rejection and formed support at $203.80.
On 27 July 2023, HON stock price fell nearly 5.69% as the company reported revenue that was less than the consensus estimates. The consensus estimates the revenue to be $9.175 Billion but it turned out to be $9.146 Billion, a surprise of -28.74 Million (0.31%).
However, Honeywell stock did beat the earning per share (EPS) estimates as consensus estimated it to be $2.20 but it turned out to be $2.23, a surprise of $0.024.
The Quarter 2 sales have increased by 2% to $9.14 Billion but have been slightly below analysts’ expectations. The industrial conglomerate expects current quarter sales between $9.1 Billion and $9.3 Billion which is falling short of analyst estimates of $9.28 Billion.
The aviation business showed a strong performance which has lifted the lower end of the 2023 sales forecast upwards. Honeywell has increased the lower end of its 2023 sales forecast by $200 Million. Honeywell is also a majority shareholder of quantum computing startup Quantinuum which is putting together its business for an initial public offering.
If the price can form a support at $196, there is a possibility of a $200 level and potentially a rise above it. On the other hand, if the next candle is successful in breaking the low of the last candle, the price might melt further down towards $191.
Will HON Stock Price Rise Back Above $200?
The stock price has slipped below 20, 50, 100, and 200-day EMAs after the revenue miss, indicating bearish momentum. The impulse move led to the price falling below the EMAs and will probably be corrected in the upcoming days. Chaikin money flow score (CMF) has dropped below the 0 mark implying weakness in the market.
The relative strength index also witnessed a sharp decline from 57 to currently standing at 35.23 indicating increased participation bears in the market. The price has crossed the lower band of Bollinger and traded way beyond it suggesting the possibility of short-term pullback.
The bands of Bollinger have also started to expand, hinting that traders should be ready for some big moves.
Conclusion
The market structure and price action of Honeywell International have turned bearish after the release of the Quarterly report. The impulse move might also have a follow-up correction toward $200.
Technical Levels
- Major support: $191 and $186
- Major resistance: $210.50 and $217
Disclaimer
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