Honeywell International Inc (HON) is a multinational conglomerate that specializes in advanced industrial products and solutions. It has businesses in aerospace, building technologies, safety and productivity solutions, and performance materials and technologies. HON is listed on Nasdaq and is a component of DJI, Nasdaq 100, and S&P 500 under Industry.

In this 20-months chart of HON, the price started off in the Wyckoff distribution phase in June 2021.

HON retraced from $227 on 2 June 2021 to a low of $206 which was then followed by a Wyckoff sign of strength (SOS) rally. However, there are some telltale signs of change of character. The high spike of volume on 20 July may seem very bullish but if compared with the earlier bar on 16 July, the 20 July has high of $225 that is lower than the high of 16 July. This suggests there is increased effort that resulted in lower high accompanied by presence of supply. 

A confirmation was observed when the price was rejected around $230 on 2 Aug.

The price subsequently drifted down to test the low of range at $206 and unable to rally up. The price broke down on 26 Nov in a Wyckoff last point of supply (LPSY) fashion. There were two attempts to rally up but the localized increase in volume hinted more supply than demand. The price hit $217 on 13 Jan 2022 but the rejection tail signals weakness ahead. This was confirmed with a rapid Wyckoff sign of weakness (SOW) wave down.

The price dove 20% and finally reached selling climax (SC) around $171 in a span of less than 30 trading days. An automatic rally followed and a rally to regain more than half of the SOW wave to define a range between $171 and $196. The price was hovering near the upper range and even did a Wyckoff upthrust (UP) on 4 May with higher volume. However, the inability to commit above $196 suggests more weakness. The price slided down to retest the low of the range.

HON price continues to move within the range like a tug war between the bull and bear throughout July till October. The bull was finally able to win the game with a spring action around 13 Oct. The confirmation came as the best sign of strength rally with localized increase in volume. The price broke above the $196 axis on 28 Oct and was able to commit above it in the next few days is indeed bullish signs.

The price rallied to around $220 and retraced to around $209 on 16 Dec. It is now consolidating in Wyckoff back up (BU) range.

Bias

Short term range bound, bullish in mid term. According to the Wyckoff method, HON price action just completed a 8 months accumulation and is likely to consolidate before attempting to break $220. If able to commit above $220, the next target is $230 and all time high.

If price broke below $209, HON will retest to $196 or slip back into the accumulation range. The bullish trend in HON suggests market rotation from growth stocks to value stocks.

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