Stock of the day: 3M

The new week brings us an analysis of 3M, the company we last analysed at the end of January. Back then, the price was giving us negative hints and our view was bearish. This is how we concluded our previous analysis on this instrument:

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

That was a perfect call! The price pretty much collapsed after that, reaching a long-term low of 140 USD one month later. Since then, we’ve had bullish correction. A correction which is surprisingly familiar. We have another flag (blue)! The last two, brought us a sell signal, what do you think will happen now?

Well, the answer seems obvious, but remember that the sell signal from this formation activates when the price breaks its lower line. As long as we’re inside, there’s no sell signal yet but chances of getting one soon are very high!