MMM pushes through Wednesday's high
3M Company (MMM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MMM ended Thursday at 136.18 gaining $4.64 (3.53%), notably underperforming the Dow Indu. (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 134.69, 3M confirmed its breakout through the prior session high after trading up to $1.69 above it intraday.
Daily Candlestick Chart (MMM as at Mar 26, 2020):
Thursday's trading range has been $5.77 (4.38%), that's below the last trading month's daily average range of $8.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MMM.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 31, 2019, MMM gained 2.03% on the following trading day.
Though the market 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 140.18 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for 3M. Out of 88 times, MMM closed higher 52.27% 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 61.36% with an average market move of 0.65%.