PaperBozz

$HON - a scary case of head & shoulder + gap fill?

Long
NASDAQ:HON   Honeywell International Inc
Honeywell is in H&S formation. The price bounced from the neck line around $195. Not all H&S break down below the neck line. But one thing that is worrisome is a huge gap right below the neck line that could get filled.
It resisted filling this time and will probably head to the shoulder line area of $217 to $220 area. ER is in about 3 days so it could either send the stock past $220 or break below $195 and fill the gap at $185.
There is no way of knowing. The stop loss can be set at $194. Trader would have to be nimble and raise stop loss as the price climbs as it can break down rather quick.
Target 1 - $217
Target 2 - $220
Risk - breaking below $195 and fill the gap at $185.
———————————————————
How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines .
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
Disclaimer: Do your own DD. Not an investment advice.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.