Stock of the day: 3M

Today, a short update about the 3M company, which we previously analyzed in the middle of January. Back then, we were bearish as the price was inside of a small flag, which in our opinion, was just a bullish correction of a bigger, negative trend. In the previous piece, we stated:

“Only the fact that the price is inside the flag is not enough to sell. A sell signal in those cases is triggered when the price breaks the lower line of this formation, so the bears should wait for that first.”

The breakout did happen, and we didn’t have to wait long for it. Along with the breakout of the lower line of the flag, the price also broke the 38,2% Fibonacci, which should never be ignored as it usually is a strong support.

We have seen volatile movements in both directions in the last few days. It has more to do with the global sentiment after the terrible start of the Indices in 2022. So, we have rapid drops and quite solid, occasional reversals. For the long-term, this can be considered as market noise. The sentiment on the 3M remains negative.