Honeywell Shares May Be Reversing Off Key Support Level
Honeywell International Inc.'s (NASDAQ:HON) shares are experiencing a potential turnaround. The stock has been trading sideways on Thursday, but analysts believe it may have reversed off a support level.
Support levels are areas where there is a large number of buyers for a stock. When shares reach these levels, they can create an uptrend as anxious buyers increase their bid prices to get in before the price rises further.
The $215 level has been significant for Honeywell since September, serving as both a resistance and support level. Some sellers who sold at this level may be experiencing 'seller's remorse' - regretting selling when the shares move higher.
This phenomenon can keep support levels intact, with disappointed sellers deciding to repurchase their shares if they can buy them back at their original selling price.