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Fan Yang

3M (MMM) Rejected at Expected Resistance; Bearish Correction Likely to Extend

Last week, we noted that 3M $MMM was approaching a key area that used to be support. Because of the prevailing downtrend, we suggested anticipation of resistance in the $175-$180 area. 

3M (MMM) Testing Previous Support Area of $175-$180 as Resistance

3M Daily Chart

(click to enlarge)

Support Turned Resistance:
- As expected, that $175-$180 area did become resistance. 
- This week, MMM's share price is sliding sharply below $170 and now testing $165. 
- It looks poised to challenge the low from early June at $160.
- We have discussed downside to the $140 or even $130 area (avg: $135). On the weekly chart, we can see this as a common support area from late 2014 to early 2016. 
- The long-term bullish trend is broken, and we are at least in a medium-term bearish trend (a year or two).
- If this bearish correction is indeed medium-term, we should see support around $135. I believe this will be the case. ( I have dry powder waiting at $140).
- A break below $130 on the other hand would reflect a more significant, and long-term bearish trend.

3M Weekly Chart

(click to enlarge)

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