3M COMPANY (NYSE: MMM)

Technical analysis

Price

$ 177.89

52 week range

$ 156.13 - $208.95

Beta

0.98

Volume / average

403.4k/ 2.4m

Sector

Industrial

Dividend

3.35%

3M Company is an American multinational conglomerate operating in the industries, worker safety, health care in the United States, and consumer goods sectors.


#MMM, after an excellent start of the year, has lost about 15% of its value since the beginning of May 2021 and we believe it is now approaching a strong support area that can be the basis for bullish upside in the coming months.

The $ 176.00 level represented strong resistance during the second half of both 2019 and 2020.


  • Strong distance from the average at 50 days: the last time the stock had diverged significantly from the average was during the outbreak of the Covid-19 pandemic

  • MACD negative and diverging with the price: from mid-September 2021 the indicator began a gradual upward reversal while the price continued to lose ground

  • RSI oversold since early September 2021 also in positive divergence with the price

  • The extent of the break in the symmetrical triangle coincides with its height (a method often used in technical analysis to identify areas of upside reversal)


To conclude, we believe that the $ 176.00- $ 179.00 price range can represent a good reversal area for the reasons indicated above: first conservative target below the 50MA and then aim for a subsequent extension.

Entry range $ 176.00 - $179.00

Target 1 $ 192.00

Target 2 $ 202.00

Stop loss $ 165.00

OTB Global Investments

6 October 2021

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