Honeywell (HON) Price Forecast: Key Support Retest Signals Strength

Breakout Sets Stage for Trend Continuation

A long-term base breakout triggered in the stock of Honeywell International (HON) in late January on a move above $223.16. That was the third and most successful attempt to break above the 2021 high, leading to a new record high of $248.18 before a pullback began. The pullback was the first since the long-term bullish breakout and therefore helped establish the next potential support zone to be used by traders for new setups. Honeywell is a diversified industrial technology company that develops aerospace, automation, and energy efficiency solutions.

Retracement Defines Key Support Levels

The bearish retracement established a low at $219.83 three weeks ago, nearly completing a 50% retracement of the prior upswing at $217.47. On the weekly chart, the 20-week moving average provides near-term dynamic trend support, while the 100-day moving average acts as a key support level on the daily chart. It is now at $216.87 and the 20-week average is at $219.36.

Reclaim of Short-Term Momentum

On Wednesday, strength was seen in the reclaim of the 20-day moving average for the first time since it was broken in early March. But it is not just a rise above the 20-day average, the full range of the session remained above the 20-day average, confirming a shift from resistance to support. The next step is for that level to hold as support; otherwise, bearish signals may begin to strengthen, potentially leading to a test of the 100-day moving average.

Bull Trend Hinges on Support Confirmation

Once prior resistance is successfully tested as support, the bull trend should be ready to proceed to higher prices. The base breakout zone near $223.16 has now been successfully tested, reinforcing its role as a key support level within the broader trend structure. However, continued confirmation of strength is needed to sustain the bullish outlook and maintain upside momentum. If the current retracement is not yet complete, that will be indicated on a drop below the higher swing low at $219.83. Support would then be indicated near the 200-day moving average at $211.21 and the 61.8% Fibonacci retracement at $210.22.

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