This is an American multinational conglomerate, formerly known as the Minnesota Mining And Manufacturing Company, which operates in the fields of consumer goods and healthcare. The company produces personal protective equipment, laminates, passive fire protection, adhesives, electronic materials, medical products and car-care products. Some of the company’s trademark brands include Scotch, Nexcare, ScotchBrite, Thinsulate and Post-it.
On Tuesday, 3M is going to report its earnings per share before the US opening bell.
After the company peaked in the end of January, it sharply reversed south and continued falling until it found support near the 191.40 area around the 1st of May. Since then, the stock has been trading in a sideways manner, creating a range between approximately the 193.40 and 206.20 levels. We will continue monitoring the stock and wait for it to break through either of the sides. Till then, we will remain neutral.
On the upside, a break through the upper side of the range at 206.20, could open the way towards the 209.20 zone. That said, for us to become bullish in the near term, we would need to see a close above that zone, where the price could then rise to the 221.70 hurdle, marked by the high of the 17th of April. Slightly above that lies another good potential area of resistance at 226.00, which acted as a good support line on the 2nd of March.
On the downside, we would need to see a strong move back down to the lower side of the aforementioned range, at around 193.35, and then eventually a break of it, before we start examining lower levels. However, in order to become more comfortable with the downside scenario, we would need to see a break below the 188.30 barrier, which acted as good support mid-April last year. 3M could then slide towards the next potential area of support at 180.00, or even to the 173.40 mark, which held the price from dropping lower around the 3rd of February 2017.
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