Potential $MMM Long Setup Forming --> Give It A Month Or So...
The $MMM monthly chart seems to be showing a few signs of consolidation on the 1M chart, with the RSI pointing to a potentially large upwards thrust soon:
On top of that, we have further signs of consolidation on the weekly chart, hitting almost the same bottom twice, with decreasing volume since one of the largest volume candles in the past 5+ years (on the first bottom from the fall):
On the daily, we have reclaimed the 50EMA, though we seem to be a bit overbought here:
I imagine that we will look to either build support off of the 50EMA, or drop back down into this consolidation range for a few more weeks. I think that this could be a good position to scale into for long term growth, provided this trendline does not break.
I have not chosen an entry yet, but will be watching this stock closely over the next few weeks for more signs of consolidation and potential breakouts to the upside. Any bounces in the $153-$157 area seem to be a very safe buy provided we do not break the trend or make a lower low on the 1D. As long as we are in this consolidation zone below, I think you are safe to accumulate or look for good long entries on put spreads when volatility likely cranks up soon, as even sideways action could get you paid:
On top of that, we have further signs of consolidation on the weekly chart, hitting almost the same bottom twice, with decreasing volume since one of the largest volume candles in the past 5+ years (on the first bottom from the fall):
On the daily, we have reclaimed the 50EMA, though we seem to be a bit overbought here:
I imagine that we will look to either build support off of the 50EMA, or drop back down into this consolidation range for a few more weeks. I think that this could be a good position to scale into for long term growth, provided this trendline does not break.
I have not chosen an entry yet, but will be watching this stock closely over the next few weeks for more signs of consolidation and potential breakouts to the upside. Any bounces in the $153-$157 area seem to be a very safe buy provided we do not break the trend or make a lower low on the 1D. As long as we are in this consolidation zone below, I think you are safe to accumulate or look for good long entries on put spreads when volatility likely cranks up soon, as even sideways action could get you paid:
In the coming days, I expect it to cool off a bit and maybe come back down to establish support before trying for higher highs.