MMM closes above its opening price after recovering from early selling pressure
3M Company (MMM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MMM ended the week 5.59% higher at 146.44 after gaining $0.63 (0.43%) today, slightly outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.14 lower after the open, 3M managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, MMM gained 1.99% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MMM as at May 22, 2020):
Friday's trading range has been $2.04 (1.4%), that's far below the last trading month's daily average range of $4.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MMM.
After trading down to 144.60 earlier during the day, the stock bounced off the key technical support level at 144.90 (S1). The failure to close below the support might increase that levels significance as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for 3M. Out of 417 times, MMM closed higher 62.35% 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 61.87% with an average market move of 0.57%.