HONEYWELL FLOUR: 3 Years New High

The share price of Honeywell triggered a New Intraday high for 2014 before closing at N4.01.

The Intraday spike of N4.13 the highest last seen since October 2011 put in a new high today, aligning with June 28th 2013 levels forming strong resistant levels.

Overall Trend has met all the criteria of an (Ascending Triangle)

The Ascending Triangle Pattern

The Ascending triangles are generally considered bullish and are most reliable when found in an up-trend. The top part of the triangle appears flat, while the bottom part of the triangle has an upward slant. Here is a Typical Ascending Triangle Pattern

In ascending triangles, the stock becomes overbought and prices are turned back.Buying then re-enters the market and prices soon reach their old highs, where they are once again turned back.Buying then resurfaces, although at a higher level than before.Prices eventually break through the old highs and are propelled even higher as new buying comes in.

A quick look at HONEYWELL daily chart shows similar pattern of the September -December 2013 rally in the making.

Series of Higher Lows from 2.60-2.70-2.90-2.99 with strong resistant at N3.10 within the 4 months rally.Breakout above N3.10 between Dec 6th-10th 2013 with series of pullbacks holding up strong above N3.10 thus confirming Old resistant lines now New Support.Height between September Low/High N3.10-N2.60=50 kobo.. Breakout above N3.10+50 kobo=N3.60 Price Target.

January-March 2014 rally:

Series of Higher Lows/Highs from N3.09-N3.30-N3.50 with strong support within the N4.00 rangeHeight within triangle ranges 0.50-0.70 kobo- with a Target price within N4.50-N4.70 levels.

Possibilities of consolidation within these current levels before an eventual Breakout. If the price retreats below consolidation, it signals another, likely sharp, decline towards the N3.70-N3.80 points before attempting the next Gallant charge towards  N4.50-N4.70 levels.

HONEYWELL WEEKLY CHART

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