Above Resistance - Honeywell

Published on Wednesday, 28 July 2010 07:32 Written by TradersHuddle Staff

New York, July 28th (TradersHuddle.com) - Shares of Honeywell International, Inc. (NYSE:HON) closed the trading session at $43.43 just above calculated resistance at $42.10 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 $39.60 and resistance at $42.10, 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 $42.10 to see if the stock holds the breakout without rolling over.