Stock of the day: 3M

By Tomasz Wisniewski|

Published: December 29 2022, 10:31 GMT+0

Stock of the day: 3M


In today’s analysis, interesting bearish setup on the 3M Company, which for the last time we analyzed on the 21st of July. Back then, we saw a bullish setup, and let’s see how that worked out. This is how we concluded our previous piece:

“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.”

142 USD was reached a few days later. That did not stop the buyers as in the middle of August, MMM reached the top at around 152 USD. – that was a great piece of analysis. Since that, the price is going lower, staying in the long-term downtrend protected by the black down trendline. The most recent development here is the Head and Shoulders pattern (yellow), which is already active after the breakout of the blue neckline and the red mid-term up trendline.

Current sentiment is negative and the potential target is on the green long-term support, which is the low from October around 106 USD. The chances that we will get there are significant.