Stock of the day: 3M Company

Last week was negative for stocks. We don’t want to say ‘bad’ because we’re still in the major uptrend and it’s just a correction – but yes, prices last week were mostly going down.

It looks like the SP500 is ready to end this correction and start the week off on the front foot but there are a lot of instruments that don’t share this optimism. One of those instruments is the company 3M, where we can see a chance for a further slide.

Our negative view on this instrument comes from the fact that the price broke the major long-term uptrend line (black), which in itself can be an invitation to sell. What’s more is that we have a breakout from the symmetric triangle pattern (blue), also to the downside. And that’s not all! On top of all of this, the price broke crucial horizontal support on the 192 USD (orange), and that significantly increased the bearish momentum.

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.