Why 3M shares might be set to rally again
MMM•3M shares may resume a rally after technical indicators showed fading downward momentum following a September 14 low of $160.27. A sustained break above $170 could point to resistance at $184-$185, while a fall below about $162 and $160.27 would damage the bullish scenario.
1. Technical signals improve
3M shares briefly fell below a 50% retracement of their rally since March but did not remain there, a possible bullish sign. The stock’s relative strength index did not confirm its September 14 low of $160.27, indicating that downward momentum may be waning; the RSI was also at levels technical analysts recognize as oversold.
2. Key levels ahead
3M has since risen to near $170, a resistance level. A string of closes above $170 could put $184-$185 in focus, followed by $195, $205 and the 2018 all-time high of $217.19. A fall through the area around $162 and the $160.27 low would damage the bullish scenario. The MACD indicator is also sending positive signals.
