MMM breaks above 100-day moving average for the first time since April 24th
3M Company (MMM) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MMM finished the week 4.57% higher at 171.44 after gaining $0.86 (0.5%) today, slightly outperforming the Dow Indu. (0.14%). Today's close at 171.44 marks the highest recorded closing price since August 1st. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MMM as at Sep 13, 2019):
Friday's trading range has been $2.62 (1.54%), that's slightly below the last trading month's daily average range of $2.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MMM.
The stock managed to close above the 100-day moving average at 170.28 for the first time since April 24th.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 162.33. The last time this happened on Wednesday, MMM actually gained 1.49% on the following trading day.
Although 3M is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for 3M. Out of 59 times, MMM closed higher 59.32% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.19% with an average market move of 1.29%.