Honeywell International Inc. (NASDAQ: HON) stock price witnessed selling pressure in the short-term after the price suffered rejection from the 200-day EMA. The bears have gained in the short term and might continue to dominate until the price respects the key EMAs.
Moreover, the price trend analysis elaborates that the HON stock price experienced a selloff from the very beginning of the current quarter. The last quarter was good for the HON stock. Investors and the stock price gained higher to reach a high of $210. However, the current quarter has been dominated by bears and the price is down over 12% from the recent high and currently trades at $183.47.
The technical indicators imply that the HON stock price trades below the 50-day EMA and 200-day EMA indicating a bearish dominance. Moreover, RSI shows a divergence between the stock price and momentum indicating a possible reversal may be seen in the coming sessions.
Honeywell International Inc. is yet to announce quarterly results post which the stock price might show gains if the results outperform the Wall Street analysts. The analysts are expecting the company to deliver a revenue of 9.23 Billion and an earnings of 2.22 Billion.
Currently, the stock price is respecting a declining channel pattern. The stock price may resume the decline until it is maintained in the channel. The breakout of the declining channel might add more buyers and the price might show gains thereafter.
HON stock’s option-chain analysis states that the current implied volatility in the market of HON is 25.49% with an increment of 0.84% in the last trading session. The at-the-money strike price has 156 open contracts on the PUT side and 334 open contracts on the CALL side indicating the dominance of sellers at the current level.
HON Stock Price Forecast For 2023
The average analyst price target for the HON stock in 2023 is $217.31, which represents a potential downside of 18.39% from the current price. However, there is a wide range of analyst price targets between $180 to $265.
The most optimistic analysts believe that HON stock could reach $265 in 2023 indicating an upside potential of over 44.37%. If the global IT and software Industry grows strongly, the price may rise.
HON Stock Price Shows Weakness Over the Charts
The overall technical indicators including the RSI and MACD signal a 90% “sell” with a strong short-term outlook on maintaining the current direction.
Conclusion
Honeywell International Inc. (NASDAQ: HON) stock price is facing bearish pressure after failing to break above the 200-day EMA. The price is down 12% from the recent high and is trading in a declining channel pattern. The technical indicators suggest a possible reversal in the near future.
The company will announce its quarterly results soon, which may affect the price movement. The option-chain analysis shows more sellers than buyers at the current level. The implied volatility is 25.49% with a slight increase in the last session.
Technical Levels
- Support Levels: $180.01 and $175.01
- Resistance Levels: $187.9 and $196.05
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/14/hon-stock-price-analysis-can-hon-stock-surge-after-the-results/