HONAUT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.6

Here’s a detailed technical analysis of Honeywell Automation India Ltd (HONAUT)

📊 Trend Overview

Current Phase: Reversing from downtrend with weak momentum

Price Action: Trading slightly below 50-DMA (₹37,631) and 200-DMA (₹38,890), indicating bearish pressure with potential base formation.

Volume: Below average (2,341 vs 3,138), suggesting low participation and lack of conviction in current price action.

📈 Momentum Indicators

RSI (52.7): Neutral zone — no clear momentum, indicating indecision.

MACD (-256): Negative and diverging — signals bearish momentum, though flattening could hint at reversal.

Bollinger Bands: Price likely near middle band, consistent with sideways movement and low volatility.

🧭 Chart Patterns

Descending Channel: Price has been declining from ₹52,099 highs, forming lower highs and lower lows.

Base Formation Attempt: Price stabilizing near ₹37,000–₹37,600 zone, suggesting potential bottoming.

🔍 Support & Resistance Levels

Level Price (₹) Commentary

Support 1 37,000 Recent base zone

Support 2 35,500 Previous swing low

Support 3 31,000 52-week low, long-term support

Resistance 1 38,000 200-DMA, immediate ceiling

Resistance 2 39,500 Previous breakdown zone

Major Resistance 42,000 Trend reversal confirmation

🎯 Entry & Exit Zones

Optimal Entry: ₹36,800–₹37,200 (on dips with reversal confirmation)

Short-Term Target: ₹38,800–₹39,500

Exit Zone / Stop-Loss: ₹35,500 (below swing support)

🔄 Short-Term Outlook

Momentum: Weak and stabilizing

Bias: Neutral-to-bearish below ₹38,000; bullish only above ₹39,500

Phase: Reversing — attempting to bottom out after prolonged decline

🧠 Key Takeaways

HONAUT is showing signs of bottoming after a steep correction from its highs.

RSI and MACD suggest weak momentum, while price action near key support levels hints at a potential reversal.

A close above ₹39,500 with volume could confirm trend reversal and open upside toward ₹42,000.

Let me know if you’d like a chart visualization or screener of similar reversal candidates.

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