Honeywell Close to Important Price Levels

Published on Friday, 03 September 2010 04:36 Written by Danny Miller

New York, September 3rd (TradersHuddle.com) - Shares of Honeywell International, Inc. (NYSE:HON) closed the trading session at $42.01 near its 50 day and 200 day moving averages currently set at $41.33 and $41.92 respectively. Honeywell's price action is above these important levels, which could translate into a trading opportunity.

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.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently below the 200 day moving average resulting in not a prime setup where buying the dip will present a good trading opportunity.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $38.08 and calculated resistance at $43.02. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on Honeywell, should evaluate their trade, as it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs see where the current price action of stock is and establish a short trade versus those levels.