3M Co. (MMM) was reviewed just last week and I wrote, "3M is pointed higher. The $295-$300 area is the next logical price target. Sell stops should be below $230." Prices have suddenly turned lower and are down further today. Is this a serious reversal or will it produce a buying opportunity? Let's look at the charts again.
In this daily chart of MMM, below, we can see that MMM stopped short of $260 and has reversed lower. There is some minor chart support below $250 and more around $240. Prices are above the rising 50-day moving average line and that line intersects now around $240. The 200-day moving average line is rising and well below the market. The daily On-Balance-Volume (OBV) line has been stalled the past three months and has not made a new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) is in a bullish configuration -- rising and above the zero line.
In this weekly candlestick chart, below, we find no reversal patterns. Prices are above the rising 40-week moving average line. The weekly OBV line has made a new high for the move up, unlike the daily chart. The weekly MACD is bullish like the daily chart.
In this Point and Figure chart of MMM, below, we can see that prices are still in an uptrend. A decline to $246.74 would give us a down column of O's.
Bottom line: My charts of MMM do not show a pattern of distribution and they do not show a reversal pattern at this time. Without some signs of selling or some bearish divergences I cannot currently make the case for declines below the $240 area -- nearby support.