3M Co. (MMM/NYSE): general review
08 May 2018, 11:12
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 202.10 |
| Take Profit | 208.00, 215.00, 220.00 |
| Stop Loss | 196.00 |
| Key Levels | 188.00, 192.00, 202.00, 210.00, 220.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 195.90 |
| Take Profit | 185.00, 180.00 |
| Stop Loss | 202.00 |
| Key Levels | 188.00, 192.00, 202.00, 210.00, 220.00 |
Current trend
The decline of 3M Co. shares below the 52-week low at the beginning of last week was followed by a correction. The consequences of the quarterly report which was worse than the market expectations and the decrease in the forecast for 2018 put pressure on the issuer's quotes. The decrease in profit in the last quarter is attributed to the short-term weakening of the final products in the market. However, 3M Co. remains one of the leaders in its sector with a high margin and profitability, which allows the stock to win back lost positions in the future.
During the last week the stock of 3M Company grew by 3.02%. S&P 500 went up by 0.29% within the same period.
Support and resistance
Last week, the issuer kept the demand zone at 192.00–196.00, which caused "bullish" sentiment. The current technical picture indicates a possible correction of the company's shares after a rather protracted rally. At the moment, the #MMM shares are consolidating. Indicators show mixed signals: the price has consolidated below MA(50) and MA(200), and MACD histogram is in the positive zone. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #MMM shares are neutral.
Support levels: 192.00, 188.00.
Resistance levels: 202.00, 210.00, 220.00.
Trading tips
If the price consolidates below the 202.00 mark, corrective movement is expected. Potential profits should be locked in by orders at 208.00, 215.00 and 220.00. Stop-loss will be placed at 196.00.
If the price consolidates below the level of 196.00, one should consider selling the company's stock. The moving potential is aimed at 185.00–180.00. Stop-loss should be placed at 202.00.
Implementation period: 3 days.
The decline of 3M Co. shares below the 52-week low at the beginning of last week was followed by a correction. The consequences of the quarterly report which was worse than the market expectations and the decrease in the forecast for 2018 put pressure on the issuer's quotes. The decrease in profit in the last quarter is attributed to the short-term weakening of the final products in the market. However, 3M Co. remains one of the leaders in its sector with a high margin and profitability, which allows the stock to win back lost positions in the future.
During the last week the stock of 3M Company grew by 3.02%. S&P 500 went up by 0.29% within the same period.
Support and resistance
Last week, the issuer kept the demand zone at 192.00–196.00, which caused "bullish" sentiment. The current technical picture indicates a possible correction of the company's shares after a rather protracted rally. At the moment, the #MMM shares are consolidating. Indicators show mixed signals: the price has consolidated below MA(50) and MA(200), and MACD histogram is in the positive zone. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #MMM shares are neutral.
Support levels: 192.00, 188.00.
Resistance levels: 202.00, 210.00, 220.00.
Trading tips
If the price consolidates below the 202.00 mark, corrective movement is expected. Potential profits should be locked in by orders at 208.00, 215.00 and 220.00. Stop-loss will be placed at 196.00.
If the price consolidates below the level of 196.00, one should consider selling the company's stock. The moving potential is aimed at 185.00–180.00. Stop-loss should be placed at 202.00.
Implementation period: 3 days.
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