Honeywell International Inc. (NASDAQ: HON) stock price slumped by 0.86% in the intraday session on Friday, closing the week at 2.4% down from the previous week. The HON stock price suffered rejection while attempting to break above the 200-day EMA and a round level of $200.
The HON stock price might show gains on Monday in light of the news that Honeywell International won a $25.7 million order from the US Navy to supply 1,278 landing gear parts for the F/A-18 aircraft. The order includes two types of wheels and disk brake stators. The work will be completed in South Bend, Indiana, by September 2024.
The price action analysis of HON stock illustrates that the stock is in a neutral or bearish trend. The daily chart shows a bearish crossover of the 50-day and 200-day EMAs. The price has stepped down from the bullish territory and currently hovers in the neutral territory. The bulls have established their presence at the $183 level and will try to defend their position if the price declines on Monday.
Analysts offering a 1-year price forecast for Honeywell International Inc. have given a maximum estimate of $265 with an upside potential of more than 39.6% and a minimum estimate of $180.
HON stock option-chain analysis shows that the current implied volatility in the market is 20.34% with an increment of 0.10% in the last trading session. The at-the-money strike has an OI of 327 on the PUT side and 290 on the CALL side indicating that bulls are slightly dominating at the CMP.
HON Stock Price Showed Weakness Over The Daily Chart
The HON stock price is currently at $189.78 and glimpsed weakness over the daily charts as the price has suffered rejection from the higher EMA and fell below the lower EMA.
The price has immediate support at $183 and might decline on Monday to break below the lower levels. The bulls have established their presence at $183 and will try to defend the level and halt the downward momentum so as to reverse the price trend in their favor.
Technical Indicators Show Weakness Over the Chart
The daily HON stock price chart shows that the price is trading below the key moving averages of the 50-day and 200-day EMAs. The EMAs have turned out to be a dynamic resistance for the price.
The overall technical opinion rating, including RSI and MACD indicators, signals a 72% “sell” with a strengthening short-term outlook on maintaining the current direction.
Conclusion
Honeywell International stock fell by 0.86% on Friday and by 2.4% in a week. The stock failed to break above $200 and the 200-day EMA. The stock price may rise on Monday after winning a $25.7 million order from the US Navy for F/A-18 aircraft parts. The stock is in a neutral to bearish trend, with a bearish crossover of the 50-day and 200-day EMAs. The stock has support at $183 and may decline or bounce from there. Analysts have a bullish outlook of $265 and a bearish outlook of $180 for the next year.
Technical Levels
- Support levels: $183.52 and $176.65.
- Resistance levels: $196.05 and $200.34.
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.
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/2023/09/25/hon-stock-price-slides-below-50-day-ema-and-shows-weakness/