MMM closes higher for the 2nd day in a row
3M Company (MMM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MMM ended the month -0.29% lower at 155.99 after gaining $0.42 (0.27%) today, underperforming the Dow Indu. (0.85%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MMM as at Jun 30, 2020):
Tuesday's trading range has been $2.66 (1.72%), that's below the last trading month's daily average range of $4.19. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MMM.
Prices are trading close to the key technical resistance level at 158.67 (R1). After having been unable to move lower than 153.48 in the prior session, 3M found buyers again around the same price level today at 154.05. The last time this happened on June 12th, MMM gained 1.85% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 158.67 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for 3M. Out of 517 times, MMM closed higher 57.64% 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 57.25% with an average market move of 0.40%.