MMM ends the day indecisive
3M Company (MMM) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MMM finished Monday at 154.80 gaining $1.95 (1.28%), significantly outperforming the Dow Indu. (0.04%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MMM as at Jul 13, 2020):
Monday's trading range has been $2.77 (1.79%), that's slightly below the last trading month's daily average range of $3.47. 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.
The share managed to close back above the 50-day moving average at 153.47. After spiking up to 156.93 during the day, 3M found resistance at the 20-day moving average at 155.93. The last time this happened on July 2nd, MMM actually gained 0.67% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the close-by swing low at 150.99 where further sell stops might get triggered. Further selling could move prices lower should the market test June's nearby low at 150.10.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for 3M. Out of 649 times, MMM closed higher 52.08% 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 59.48% with an average market move of 0.27%.