Honeywell Stalls, But Support Level Favors Uptrend

Honeywell International Inc.'s (NASDAQ:HON) shares are trading sideways on Thursday, but a new uptrend may be forming. The stock has reversed off a support level at $215, which is an important price point for HON.

This support level isn't a coincidence - it's been significant since September, acting as both resistance and support. When shares hit this level, some sellers who previously sold at the resistance may experience 'seller's remorse,' regretting their decision to sell when the stock moves higher.

These disappointed sellers may then repurchase their shares if they can buy them back at the original selling price. If a large quantity of these buyers places buy orders when the shares drop back to this support level, it can create a snowball effect that forces the stock into an uptrend.