Honeywell automation: Multibagger gave 80% returns using Elliott wave

honeywell automation multibagger stock trading Jul 06, 2021
Honeywell, Multibagger stock

By application of Elliott Wave we can identify potential Multibagger stocks that can be added in portfolio. Honeywell Automation was identified in May 2020.

We published about Honeywell Automation in May, 2020 and predicted a possibility of Multibagger returns This stock has managed to outperform giving almost 80% returns in less than a year considering the high near 50000 which was made on 15th March 2021.

Below is the chart which shows a detailed analysis of Honeywell Automation published to clients using Channels, Moving Averages and Elliott Wave technique. We recommended this stock when it was quoting near the 27900 levels and was successfully able to catch the up move. See yourself how we were able to catch the up move.

Below is the chart showing detailed analysis published in our research report –“The Financial Waves Multibagger Update” in May 2021.

Honeywell Automation Weekly chart: (Anticipated as on 12th May 2020)

Happened: Till Date Daily Chart:

(Following research is taken from Multibagger report published on 13th May 2020)

Multibagger stock recommendation: Honeywell Automation India ltd

Buy Price – Buy at CMP 27900 and more on dips to 22000, Ensure to buy slowly in staggered fashion on dips as short term correction is possible.

Time Horizon – 2 to 3 years

Investment – 5% of capital

Target price –50000

Stop loss – 14000

Refer detailed research below

Wave Analysis-

Honeywell Automation India Limited is engaged in the manufacturing of electronic systems and components; repair and maintenance, and trading of machinery, equipment and supplies. The stock has been in a secular bull trend and moving in well channelized manner.

As of now the stock is currently moving in the form of wave (4) which is forming a complex correction. Currently wave y of (4) is unfolding and along with its completion we expect wave (4) to complete probably near 22000 levels. Post completion of wave (4), we expect a rally in the form of wave (5) to take price towards the upper trend line of the blue channel. To ride the 5th wave on upside, ensure to buy in staggered fashion as we expect it to show dips towards 22000 to 20000 levels.

In a nutshell, trend for Honeywell automation is positive and one can buy the stock at current levels of 27900 and accumulate more on dips to 22000 for target of 50000 with stop loss near 14000 levels which is below the channel support and just below the wave w (blue) area.

Happened as of 15th March 2021- It has touched its new lifetime high near 49990 levels on 15th March 2021 .The stock almost achieved its target of 50000 in less than a year. The stock is giving a return in excess of 50% even now.

As a long-term buyer of equity, one should not wish for market to go up in straight line. It’s the volatility that creates opportunity to earn exponential returns.

The above analysis clearly shows how one can identify the stocks from positional investment perspective just with the help of Elliott wave, time cycles and other advanced indicators. If you wish to build portfolio of stocks that can be potential Multibagger we can help you with identifying the stocks which can give alpha returns over medium to long term holding period. Get access now

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