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July 27 Chart of the Day - Honeywell

Honeywell (HON) beat earnings estimates but the stock Is falling in after hours trading?

How can that be?

From a price action technical analysis perspective price and do whatever it wants, whenever it wants, for any reason.  This is true for all equity, futures, commodities, Forex, Crypto, etc. charts across all time frames.

With that said, more times than not price is moving in a technical fashion rather than a fundamental fashion.  News events have a tendency to fill price levels so investors and traders who react to price movement rather than predict price movements often fare better in the long run.

And the Honeywell chart is no different than any other chart.  The caveat is the more historical price action information the better.  In other words, charts with only a few years worth of data like those who have recently gone public haven't yet created enough structure for the 5 price action tools we teach.

Since early 2020 this chart has been very bullish, making a series of higher highs and higher lows establishing its $236.86 all time high about two years ago. However, during the past two years price back tested a major breakout point near the $170 area and has since continued on its upward trend. 

So now that there's two sided price action /aka/ price action structure to the left how long can this continue?  Nobody knows with any certainty but we can formulate price levels of interest in both directions and invest/trade accordingly because we are neither bulls nor bears.

Simply put, we're traders.

So what's next?

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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