Honeywell Remains Heavy

Honeywell (HON) suffered a heavy blow yesterday. The stock opened the session with a deep gap-lower open that dropped it to key near-term support at its February lows. This level, just below the $53.50 area, was unable to hold; by the close HON was off more than 2.25% on heavy trade. The weakness has continued today with another gap-lower open despite a much better showing on the bell from the major indices. The stock has recovered a bit from but is having difficulty remaining in the green.

I believe the negative action this week is an extension of last month's fade. HON did manage a slight bounce off the $58.50 support zone during the final week of February but was unable to move past $60. The stock began to fade from this supply area as this week opened and convincingly took out nearby support on Tuesday. This breakdown action is quite damaging, and I expect the stock to continue lower before a bottom is reached....208 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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