Honeywell International Inc

Today we've chosen to take a look at Honeywell International Inc. (NYSE:HON) because it is trading within an ascending channel pattern. As you can see from the chart below, the bulls were able to briefly send the stock above the resistance, but the group lost conviction and the price has since fallen back within its confined trading range. Notice how the upper trendline recently acted as a level of resistance. Traders will likely use this failed move to suggest that the price will test the support of its 200-day moving average before heading higher.

We've also added the Parabolic SAR indicator, which has recently triggered a sell signal. The reversal of the dots suggests that we may see some short-term weakness in the stock, but it is important to keep in mind that the validity of the prolonged uptrend is still intact.