Today’s three big stock charts look at Nucor Corporation (NYSE:NUE), General Electric Company (NYSE:GE) and Honeywell International Inc. (NYSE:HON) as each of these three stocks have a different technical outlook from the same sector.
Nucor Corporation (NUE)
Shares of Nucor have been aggravating investors as the stock has traded in a tightening range since December. NUE stock is flat for the year with the S&P 500 yielding returns of about 9%. That said, it appears that Nucor is setting-up for a technical fall.
- Today’s 4% decline breaks support from the 200-day moving average. This trendline has been able to maintain a neutral trading range since April. A close below the 200-day will send technical sellers into the market.
- Earlier this week, shares of NUE were rejected by the declining 50-day moving average. This trendline is in a bearish decline and will soon connect with the 200-day for a potential “Death Cross.”
- Finally, $56.00 has been chart support as the round-number has served as a point for technicians to step in and buy dips. A break below $56 will target the next stage of support at $52.00.
General Electric Company (GE)
General Electric stock got a bump this week when Jeff Immelt announced his departure as CEO.
GE shares immediately rallied into a covey of technical levels that are likely to bring the stock back down to reality.
- Shares of General Electric rallied to their 100-day moving average and were immediately rejected. This trendline has been in a decline since early April as the stock topped-out at $30 as the stock made another in a series of lower highs.
- Currently, GE stock is in the process of trying to maintain a price above the 50-day moving average, which is also trading in a bearish pattern. Failure to break back above $28.75 will signal that this trendline is ready to send the stock lower again.
- The massive decline in volume indicates that traders are waiting for the next catalyst to move General Electric stock. Without another fundamental event, the volume will pick back up as traders take the opportunity to sell what’s left of the strength. This will target a return to $27 quickly.
Honeywell International Inc. (HON)
One of the gems in the industrial sector has been Honeywell International as the stock continues to be a low-volatility relative strength leader in the sector. HON shares are following a bullish technical pattern that continues to melt higher to new all-time highs.
- The recent consolidation in Honeywell International shares has allowed the stock to pull out of a technically overbought situation. This frees-up some room overhead for the stock to move higher.
- HON shares’ 50-day moving average remains in a strong technical bull trend. Our studies show that trend favors the bulls by a ratio of 2.3:1 in terms of the stock trading higher each day.
- Overhead resistance has been in place at $135. This dates back to the stock’s post-earnings rally that hit the same level. A break above this price should draw another round of technical buyers into the market.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
