3M Co. (MMM) was reviewed a month ago where I recommended that "Aggressive traders could consider going long MMM on a close above $207.51 - our Point and Figure breakout point. Risk below $195 or a new low while looking for gains initially back to the $220-$225 area." Prices closed above $207.51 and then retreated but we are still long as our recommended risk point has not been reached. Let's check on things again to see if this trade will ultimately work out.
In the updated daily bar chart of Action Alerts PLUS holding MMM, below, we can see the rally into early August and then the retreat. I think it is bullish that the daily On-Balance-Volume (OBV) line hardly dipped at all this month when prices declined.
MMM is holding just above the 50-day moving average line and the Moving Average Convergence Divergence (MACD) oscillator did not decline below the zero line. Net net, I think MMM still looks bullish.
In this weekly bar chart of MMM, below, we can see an improving picture. Yes, prices are still below the declining 40-week moving average line but support has developed in the $200-$190 area.
The weekly OBV line has been rising the past four months and the MACD oscillator is pointed up from a cover shorts buy signal.
In this Point and Figure chart of MMM, below, we can see that a rally to $212 will be bullish and perhaps open the way for a rally to around $245 the price target.
Bottom-line strategy: MMM is still bullish. Traders can hold earlier longs and consider buying more on a rally above $212 looking for the $245 area in the months ahead.