Honeywell International Inc. (NASDAQ:HON) rallied Friday after finding support. As you can see on the chart, the $215 level has been important for Honeywell. This is why it is the Stock of the Day.
The $215 level first became important for the stock in August 2025. After hitting this resistance, a selloff followed. When this happened, some of the people who bought shares around $215 decided doing so was a mistake.
Some also decided to sell their positions if they could eventually do so at breakeven. When the shares returned to this level in October 2025, they placed sell orders and these orders created resistance at the level again.
When this resistance broke in January, some of the people who sold at it came to regret their decisions to do so. Some of them also decided to buy their shares back if they could eventually get them at the same price they were sold for.
When Honeywell dropped back to $215 they placed buy orders and these orders created support.
When the price moved higher, some of the people who sold regretted it and vowed to buy their shares back at their sale price. Their orders created support when the shares returned to this level in June.
When the support broke in August, a different emotion kicked in. Buyer’s remorse. People who bought shares at the support decided buying was a mistake.
Some decided to sell at breakeven if they could eventually do so. When Honeywell rallied back to $215 in early October, they placed sell orders. These orders created resistance at the former support level.
When the resistance was broken, seller’s remorse kicked in once again. Some of the people who sold at the resistance regretted it and decided to buy their shares back at their selling price.
Yesterday their buying created support at the former resistance level.
Successful traders understand psychology. They know remorse can create support and resistance levels. This knowledge can be used to profit.
