HONEYWELL STRONGLY BULLISH AS RESULTS BEAT ESTIMATES
Honeywell is currently trading at 157.53-higher by about 1.5% as compared to the previous closing. In Pre-market trading on Friday, the stock was trading higher by 2.5%. The stock has cut some of its earlier gains after the opening bell.
Honeywell reported a better-than-expected quarterly profit before market open on Friday. The Company has also lifted its full-year forecasts for cash flows and margins as it rode a boom in e-commerce driven warehouse investment and aircraft production.
Honeywell has benefited from a rise in global travel that has driven record orders for jets, leading to robust demand for its avionics, braking systems, and other aircraft parts.
Sales at the aviation unit, the company’s biggest business, rose 10% to $4.03 billion. Margins expanded by 80 basis points to 22.1% in the third quarter
The company has also taken advantage of a boom in e-commerce as it supplies warehouse automation equipment and software to customers such as Amazon.com.
The company reported adjusted EPS of $2.03-above the market expectation of $1.99 per share. The company’s revenue also came in above forecasts.
On the technical front, the RSI is currently at 41.72% and suggests that the market can move in the upward direction. The current price is around the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 156.80 TAKE PROFIT AT 158.40 STOP LOSS AT 156.00