We covered the price action and indicators on 3M Co. (MMM) the other day, and we noted, "we can see that the new high or breakout entry was $213.80. As long as we do not decline to $211.69, this chart should look very strong...Stay long, trade from the long side and remember to use an appropriate sell stop."
Can we glean anything else from the charts and indicators? Let's see.
In this Japanese candlestick chart of MMM, below, we can see the price movement over the past three months. The essence of candlestick charts is the relationship between the opening price and the closing price. A bullish candle is white or empty and happens when the close is higher than the open. A bearish candle is red with this software from www.bigcharts.com. A red candle happens when the close below the opening and tells us that the bears are in charge. Since Wednesday MMM has formed candle patterns with small real bodies, which tells us that there is a balance between bulls and bears. A higher close or a bullish candle today will "refresh" the uptrend.
Meanwhile, the daily On-Balance-Volume (OBV) line has been bullish since late July and is still climbing and confirming the advance. Price momentum has slowed this month versus last month but bearish divergences are not precise timing tools.
In this Point and Figure chart of MMM, below, we can see the uptrend continues.
Bottom line: Traders and investors should stay long.