Honeywell Automation India Limited (HONAUT) Stock - Complete Technical Analysis - Oct 16, 2024

Honeywell Automation Stock Analysis: Bearish Signals & Key Support Levels

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Technical Analysis of Honeywell Automation India Limited (HONAUT)

As of October 16, 2024, Honeywell Automation India Limited (HONAUT) is trading at 49,698.75, reflecting a notable 17.16% decline from its 52-week high of 59,994.00, achieved on June 26, 2024. Conversely, the stock is up by 42.09% from its 52-week low of 34,977.70 on December 21, 2023, indicating a recovery trend over the past several months.

Support and Resistance Levels

Key Support Levels: The immediate support is observed around 49,500, reinforced by the recent low. The next significant support can be identified at 48,500, derived from previous price action.

Key Resistance Levels: The first resistance level stands at 50,000, a psychological barrier, while the next major resistance is at 50,600, corresponding to recent highs.

Recent Price Action

Recent Closing Prices: The stock has shown volatility over the last week, with the closing prices as follows:

October 16: 49,698.75

October 15: 49,776.80

October 14: 50,041.10

October 11: 50,303.65

October 10: 50,120.75

Price Trends

A significant observation is the recent downtrend, marked by consecutive lower highs and lower lows. The latest shooting star candlestick pattern on October 15 at a high of 49,999.90 suggests potential bearish reversal signals, indicating that sellers are becoming more active at higher price levels.

Indicators Overview

MACD: The MACD is currently negative, indicating bearish momentum.

RSI: At 49.64, the RSI suggests that the stock is neither overbought nor oversold, indicating a neutral stance in market sentiment.

ADX: The ADX is at 26.02, implying that the current trend strength is moderate.

Stochastic Oscillator: The Stochastic %K at 80.04 indicates that the stock is nearing overbought territory, which could foreshadow a reversal.

Volatility and Gaps

The Average True Range (ATR) suggests high volatility, with a reading of 3,509.39 over the last 14 days, reflecting significant price movements. The recent trading session on October 15 showed a notable price gap between the opening and closing values, indicating sudden price surges or drops, especially given the high of 50,595.00 compared to the low of 49,615.00.

Summary

In conclusion, HONAUT is currently experiencing a bearish trend, with immediate resistance at 50,000 and support at 49,500. The market shows signs of indecision, as indicated by the shooting star candlestick pattern and mixed indicators. Investors should be cautious and monitor these key levels, as a break below support could lead to further declines, while a rally past resistance could signal a bullish reversal.