After reversing to the downside in the end of January, the stock of 3M (NYSE: MMM) drifted heavily to the downside, together with rest of the market. But at the end of March, the share price found support near the 114.00 level, from which it rebounded. Now MMM is trading near its short-term downside resistance line taken from the high of January 27th. For now, we will take a cautious approach and remain neutral, given the proximity of the price to the above-mentioned downside line.
If the share price falls below the 131.00 hurdle, this may increase the stock’s chances of sliding further south. We will then target the 126.46 hurdle, a break of which may lead to a test of the 121.00 level, marked by the low of March 24th.
Taking a quick look at our oscillators on the daily chart, the RSI and the MACD, neither are really helping us much. The RSI is pointing slightly lower and the MACD is pointing slightly higher. The RSI remains below 50 and the MACD is above its trigger line, but below zero. Both indicators support our position of standing pat, at least for now.
Alternatively, if the aforementioned downside line breaks and MMM closes a daily candle above the 139.40 barrier, that will increase its chances of drifting further north. More buyers may see this as a good opportunity to join in and drive the share price higher. That’s when we will aim for the 143.50 obstacle, a break of which could open the door for a move to the 154.63 level, marked by the high of March 6th.
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