Trading Idea - Honeywell Broke Resistance, What to Expect?

Published on Thursday, 11 March 2010 19:00 Written by TradersHuddle Staff

New York, March 11th (TradersHuddle.com) - Shares of Honeywell International, Inc. (NYSE:HON) closed the trading session at $42.62 just above calculated resistance at $40.85 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 stock was trading in a well defined range with support at $36.68 and resistance at $40.85, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Honeywell's stock is still near the broken resistance level, traders will be focusing on $40.85 to see if the stock holds the breakout without rolling over.