After disappointing profit forecasts 3M suffered massive fall in stock prices. Now retesting a key weekly trend line. Offers a great risk-reward to buy near a loading zone and get on the train with the rest of the buyers, as long as the zone holds.
W1 - Price is at the top of the range.
D1 - Bullish cycle, bearish divergence.
H4 - Bearish divergence, if the price moves lower and breaks below the low shown in the chart, we may then start looking for sells with more bearish evidences.
In this January bullish market, bear flag breakdowns have mostly led to flat lines rather than massive drops, but given 3M's China business, and a week already full of dismal earnings reports, it can be expected that this bear flag will play out as a minor decline in the short-term stock price. There is fresh demand in the low to mid 180's, and even if it falls...
I actually am not doing anything with it. Just sharing.
This is the massive pic of the 3M stock. Note that there is a large scale channel down pattern. However, I think that it will get squeezed in between the resistance of that channel down pattern and the Fibonacci retracement level, which is shown on the chart.
3M just ranging at the moment, but where to break the triangle?
What do you think about it?
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I did a discounted cash flow valuation on 3m assuming a revenue growth rate of 5%, in line with 10, 5, and 3 year historical averages and it produced a valuation of $135. A 41% downside valuation... When I saw this I questioned the legitimacy, but played around with revenue growth rates and found, that, to justify it's current valuation of $236.55, MMM would need...
This chart shows that a MACD crossover will happen soon and recent price action is positive. This follows the Dow and could see resistance at 240. However, this company has better than expected earnings and strong growth. Therefore I am long with calls. Up 70% in three days.
Target is 249. Happy hunting.
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I see 30% pretty easily in the next few quarters. 100x off the bottom is 127 dollars another key level to watch if we dont correct very much after my (potential) wave 5 completes
Be sure to manage...
3M's earning report came up a bit short, however they have had continuous growth. Looking at this trend in the long term I believe we've hit a temporary top. I believe we will test sub $190 prices before we potentially continue the bull trend. I also don't think it's unreasonable for it to tap $175-$180 although I do think that's unlikely.
I would look to go...