Honeywell is a well-known Fortune 100 company based out of North Carolina, USA. It does business in the Aerospace, Building Technologies, Performance Materials & Technologies, and Safety & Productivity segments. It was currently in the news as it is a major manufacturer of N95 masks. The company is well-diversified, has a culture of excellence, and has built deep moats over the years. It operates as a leader in industries that are long-term growth areas.
The long-term monthly chart of Honeywell demonstrates a nine-year decade-long uptrend. This uptrend was halted in 2019, and from December 2019 to March 2020, the price fell 25%. The stock went below the long-term trendline as a result.
The swift downtrend was reversed in April 2020, and since then, prices have pulled back about 13%. In May 2020, the price crossed a crucial level defined by the bottom of the long-term trend as well as a historic support line (denoted by the dashed-Red-line).
A long position can be initiated with a top loss below the long-term trend line somewhere close to 130 and an initial target price of around 165, which is the next crucial support-resistance level.
Positions taken today at $145.85 with stop loss positioned at $116 20.46% below. Short term investors take profit point at $195 Yielding a profit of 34%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.
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