Honeywell Expected Resistance?

Published on Thursday, 02 September 2010 04:52 Written by Christian Paolinetti

New York, September 2nd (TradersHuddle.com) - Shares of Honeywell International, Inc. (NYSE:HON) closed the trading session at $40.88 near its 50 day and 200 day moving averages currently set at $41.33 and $41.91 respectively. Honeywell's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $38.08 and calculated resistance at $43.02. These levels should be watched by traders, as they provide insight into the latest price dynamics in Honeywell shares.

Traders should evaluate their options if they want to establish a position on Honeywell given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.