EchoAlphaBravo

Bullish H&S in 3M Corp.

Long
NYSE:MMM   3M COMPANY
Shares of MMM look to be forming an inverse H&S pattern that looks it could be a favorable setup for the bull camp. It's deeply oversold with an R.S.I. reading of 22.9 and is holding the neckline support, so I think it's headed higher.

Shares are in the buy zone right now at $185, which is the neck of the pattern. Look for minor resistance around the gap down at $197-200. I doubt this will pose much of a challenge for the shares, although it may provide another buying point.

Major resistance comes in at the target of the pattern at $218-224, which I believe will be reached prior to the next earnings release on July 25th.

Set your stop-loss beneath the head, around $177-179. That gives you a nice risk-reward ratio... -$8 (-4.3%) to the downside and +$39 (+21.8%). That's a 5.1:1 bullish ratio. I'm a buyer for sure!

Comments

and it's a great dividend stock!
Reply
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