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Honeywell International Inc. Message Board

  • luckyone581 luckyone581 Jun 9, 2008 8:09 AM Flag

    HON Chart Evaluation & Buy Mention

    HON (Friday close at 54.01)

    HON is a stock that just 3 weeks ago made new all-time highs but failed to follow-through on the breakout and started to get some aggressive selling when the indexes received a sell signal. The stock has dropped almost $9 from the highs and is reaching levels of support that should support the stock well.

    HON is a strong worldwide company that has been trading since July of last year in a sideways fashion between $52 and $62 and now finds itself, due to the recent breakdown in the indexes, near the low of that trading range.

    On a daily closing basis, support is major between 53.15-54.06 as there have been 4 major closing lows over the past 10 months. Intra-day support can also be considered major at 52.05 as that was the lowest low seen over the past 11 months. In addition, the 100-week MA is currently right around 51.80, which makes the $52 level a very strong support. There is no resistance of consequence until the 56.80 level is seen and even then, that resistance must be considered minor. Stronger resistance will be seen up at the 58.80 level.

    With the stock closing on the low of the day on Friday and having dropped over $5 last week alone, it is likely there will be follow-through selling on Monday, quite possibly taking the stock down near the $52 level of support.

    Purchases of HON between 52.00 and 53.00 and placing a stop loss at 51.60 and having an objective of minimum rally up to 58.00 will offer at least a 4-1 risk/reward ratio.

    My rating on the trade is a 7.5 (on a scale of 1-10 with the strongest probability rating being 10).

    My name is Tony and I am a chartist. I have been trading for close to 30 years. In the 80's I was a broker/trader/analyst for Merrill Lynch, Dean Witter, and Pru-Bache.

    I offer an inexpensive chart evaluation service on stocks of your choice through membership to my website and message board.

    “When or where do I get in? When or where do I get out? What is the trend for the next week? For the next 3 months? Where are the strong buyers and where are the strong sellers (based on past action)? What is the risk/reward ratio on my trade (based on chart objectives)? What looks good right now (chart-wise)?”

    These are some of the questions that I try to answer through chart evaluation.

    I do distribute a “free” newsletter every week that gives a chart evaluation on the stock indexes. If anyone would like to receive it please send me an email to the email address shown in the profile area.

    In addition, I also offer a paid weekly newsletter with chart evaluations on 4 stocks that I believe have attractive chart patterns and good risk/reward ratios as well as 1 chart evaluation per week on a stock of your choice.

    If you are interested in learning more about the service, please check out my website address on the Yahoo message board profile area as well.

116.32+1.86(+1.63%)Jun 30 4:04 PMEDT