Honeywell International Inc. (HON) is a global provider of solutions for the aerospace, building, and industrial sectors, as well as advanced materials.
Why is HON Falling?
The company’s stock price has declined by 6.52% in the past month, largely due to its Q4 results that matched the analysts’ forecasts but its 2022 guidance that fell short of expectations. The company’s revenue and earnings were in line with the market estimates, but its projected revenue and EPS for 2022 were lower than the consensus.
The company also made some strategic changes, such as buying a complementary business and restructuring another unit, which could have a long-term positive effect but created some short-term uncertainty.
The company’s stock also suffered from the wider market downturn amid rising inflation and interest rates. However, some analysts still recommend Honeywell as a buy, citing its solid fundamentals, diversified portfolio, and growth opportunities.
HON Stock Price Technical Analysis
HON stock broke down the rising channel with three powerful red candles. The stock price is trading below the 200-day and 50-day moving averages, and both SMAs are moving closer, suggesting a bearish outlook.
MACD is declining toward the bearish zone. The MACD value is -0.8135 and the signal value is -1.82, and both are dropping. This shows that the bullish momentum is weakening and a bearish crossover also confirms the negative scenario. The MACD and the signal line are also under the zero line, indicating a downtrend.
The RSI is approaching the oversold zone. The RSI value is 32.55, which is lower than the 50 level, implying a bearish market. The 14 SMA value is 53.30, which means that the Honeywell stock price is bearish at the moment.
The Bollinger bands for Honeywell stock have an upper band of $214.79, a middle band of $205.50, and a lower band of $196.20. The stock’s price is below the lower band, indicating an extremely bearish trend.
The technical indicators suggest that HON stock is facing strong selling pressure and may continue to decline in the near term.
Conclusion
HON stock is in a bearish phase, as the company’s Q4 results and 2022 guidance were disappointing. The company’s strategic moves may have a positive impact in the future, but they also added some uncertainty in the short term. The company’s stock also faced headwinds from broader market conditions, such as rising inflation and interest rates. Some analysts still see Honeywell as a buy, but the technical indicators suggest that the stock may have more downside potential in the near term. Therefore, investors should be cautious and monitor the stock closely for any signs of reversal or recovery.
Technical Levels:
- Support – The current support level is $190.00.
- Resistance –The current resistance level is $210.00.
Disclaimer
The prediction given in this article is for informational and educational use only. Do not use this information as financial, investment, or as trading advice. Investing and trading in stock is a risky task. Please consider your circumstances and risk profile before making any investment decisions.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/08/01/honeywell-stock-price-prediction-aug-2023-whats-wrong-with-hon/