The Weekly Scorecard
This week, Honeywell International Inc. (HON) demonstrated significant strength, outperforming the broader market indices. While the S&P 500 (SPY) and Nasdaq (QQQ) experienced mixed trading, HON acted as a market leader, pushing towards the top of its yearly range. This type of relative strength is a key bullish indicator for portfolio managers.
Investors looking to identify similar market leaders can compare performance using advanced charting platforms. These tools make it easy to see the charts that matter on TrendSpider (affiliate link), helping to visualize relative outperformance or underperformance against a benchmark index. Honeywell's recent price action is a textbook example of a stock leading the market higher.
Why It Moved
Honeywell's advance this week was less about company-specific news and more tied to a rotation into industrial and value-oriented sectors. As concerns about inflation persist, investors have shown a preference for established companies with strong cash flows and pricing power. HON, as a diversified industrial conglomerate, fits this profile perfectly.
The stock's movement correlated with positive sentiment in the industrial space, shrugging off broader tech-related weakness. This suggests that capital is flowing into sectors perceived as more resilient in the current macroeconomic environment, directly benefiting legacy names like Honeywell. A detailed HON Analysis reveals its stable position within the sector.
The Weekly Chart
The weekly candle for HON is decidedly bullish, closing at $227.56, just shy of its 52-week high of $229.59. This price action indicates strong buying pressure throughout the week, with the stock holding its gains into the close. A close near the high of the week suggests that momentum remains with the bulls and that there was little profit-taking.
Currently, HON is consolidating directly below a major resistance level, which is the multi-year high. A successful break and hold above this area would be technically significant. The stock has built a solid base of support in the preceding weeks, providing a launchpad for this recent test of resistance.
Next Week's Playbook
The key level to watch for next week is the 52-week high around $229.59. A decisive break and close above this level on strong volume would signal a continuation of the uptrend and could trigger a new leg higher as breakout traders enter the name. This would be a clear signal that buyers are in full control.
Conversely, if HON fails to break through this resistance and rejects the $229 level, we could see a short-term pullback. In that scenario, traders will look for the price to find support near the middle of this week's trading range, around the $220-$222 area. The market's overall direction will likely influence which scenario plays out.
Content is for info only; not financial advice.