Stock of the day: 3M COmpany

The last day of the week brings us an analysis of 3M, It’s not the first time we mention this instrument because it moves really technically and is a real treat for price action traders.

Look at it for yourself, the price moves in a very healthy downtrend with periods of sharp drops and steady bullish corrections. The last three were really handsome flags (blue lines) and all of them resulted in a breakout of the lower line of the pattern and a comeback to a bearish trend.

It may come to an end though. The latest formation is not a trend continuation but a reversal – an Inverse Head and Shoulders (yellow). 3M has already managed to break the neckline (red), which means that the buy signal is ON! The first potential target is on the long-term down trendline (black) and the next target is on the green horizontal resistance at 142 USD. Sentiment remains positive as long as we stay above the neckline, and chances for that now are quite high.