MMM breaks back below 100-day moving average
3M Company (MMM) Technical Analysis Report for Sep 16, 2019 | by Techniquant Editorial Team
MMM finished Monday at 169.67 losing $1.77 (-1.03%), underperforming the Dow Indu. (-0.52%). Closing below Friday's low at 169.86, the market confirmed its breakout through the previous session low after trading up to $1.95 below it intraday.
Daily Candlestick Chart (MMM as at Sep 16, 2019):
Monday's trading range has been $3.30 (1.93%), that's slightly above the last trading month's daily average range of $2.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MMM.
3M closed back below the 100-day moving average at 169.78. When this moving average was crossed below the last time on April 25th, MMM actually gained 0.50% on the following trading day.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 172.48 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for 3M. Out of 60 times, MMM closed higher 60.00% 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 63.33% with an average market move of 0.92%.