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Honeywell's (HON) Sweet Stock Chart: A Move to $108 Signals More Gains

NEW YORK (TheStreet) -- Action Alerts PLUS name Honeywell (HON - Get Report) had a relatively shallow decline in August and September, but prices have rallied nicely and the stock looks poised to retest a broad band of resistance in the $105-$107 area.

In this chart of HON, above, we can see a bullish divergence between the lower lows in prices and the higher lows from the momentum indicator. This divergence suggests that prices should try to test the upside.

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The OBV line has started to improve, which tells us that volume is increasing on up days, a sign of accumulation.

The point and figure chart above shows us two things. First, we see that prices have been making higher lows for a while and, second, that there is not much resistance overhead in the $104-$106 area. A trade at $108 will be a new high for the move up and will suggest further gains ahead.

Separately, TheStreet Ratings team rates HONEYWELL INTERNATIONAL INC as a Buy...