Stock of the day: 3M

Today we have an analysis on the company 3M. It’s the second one we’re featuring on our portal this year. Back in mid-September, we’d analysed 3M and were bearish saying:

“Currently, the price is breaking the 23,6% Fibonacci. The next target is on the 38,2% Fibo and chances that we’ll get there are pretty high. The only problem can be the global risk ON mode associated with the bouncing indices. The sell signal on 3M will be cancelled when the price gets back above the 192 USD mark.”

Back then, the price was 184 USD and by the beginning of October, it had reached long-term lows at around 173 USD. That’s the level we’d additionally highlighted in the previous piece as a crucial support.

Since the price reached that support, we do have a correction, which is shaped like a wedge. The wedge ended yesterday with the breakout to the downside and it’s this breakout that our analysis today is about. This breakout gives us a sell signal and chances for further downswing are very high.