Stock of the day: 3M

At times like these, you feel lucky that you can also short stocks. The end of the week brings us a quick update on 3M, a company we analysed here many times. The last piece we wrote was at the beginning of May and back then, we were of course bearish:

“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!”

3M’s bearish trend is really a thing of beauty. Strong drops and technical corrections. The one mentioned in the previous piece ended of course with a breakout to the downside and a proper slide. The sell signal is ON but it’s time to look for the aim of this movement. This target can be the area around 114 USD (red), so a Covid crash low from 2020!

Chances that we’ll get there are quite high. If that happens straight away off with a bullish correction. In the meantime, it’s still a subject of discussion. We will soon find out but the bottom line here is that 3M is in a proper down trend, and has a legitimate, long-term sell signal.