Is Honeywell Trade Over?

Published on Thursday, 29 July 2010 02:21 Written by Christopher Lynn

New York, July 29th (TradersHuddle.com) - Shares of Honeywell International, Inc. (NYSE:HON) ended the trading session lower by $0.19 or -0.44% from its previous close. Honeywell's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Honeywell?s (NYSE:HON) principal activity is that of a diversified technology and manufacturing company. It serves customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials and process technology for refining and petrochemicals etc. It also manufactures engine boosting systems for passenger cars and commercial vehicles.

Honeywell's current stock range is defined by calculated support defined at $39.6 and by the resistance level at $42.1, which should be used by traders planning their trades.

Traders wanting to establish a position in Honeywell stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Honeywell shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: