MMM dominated by bulls lifting the market higher throughout the day
3M Company (MMM) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
MMM ended Thursday at 137.91 gaining $4.77 (3.58%) on low volume, strongly outperforming the Dow Indu. (2.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 135.84, the share confirmed its breakout through the previous session high after trading up to $2.37 above it intraday.
Daily Candlestick Chart (MMM as at Apr 02, 2020):
Thursday's trading range has been $6.21 (4.7%), that's below the last trading month's daily average range of $8.22. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MMM. Prices continued to consolidate within a tight trading range between 130.91 and 139.44 where it has been caught now for the whole last trading week.
Notwithstanding a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
3M managed to close above the 20-day moving average at 136.76 for the first time since January 21st. When this moving average was crossed above the last time on December 13, 2019, MMM gained 1.16% on the following trading day. After having been unable to move lower than 131.01 in the previous session, the stock found buyers again around the same price level today at 132.00.
While MMM is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 139.44 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 131.01 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for 3M. Out of 46 times, MMM closed higher 56.52% 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 58.70% with an average market move of 1.39%.