With prices down about $16 from their July zenith, we think we made the right move. But the forecasting business is not about taking victory laps but about "What have you done for me lately?" Does MMM have more downside from here? Let's look at the charts again.
In this updated daily chart, above, we can see that since late July MMM has broken below the 50-day moving average line and now the 200-day average line. The slope of the 50-day average is negative. The On-Balance-Volume (OBV) line moved sideways in July to September but began to decline in October as sellers of MMM became more aggressive. 3M has made lower lows in September and October and the momentum study has, too, thus a now-bullish divergence to suggest a possible bounce.
In this three-year weekly chart, above, we can see 3M is trading below the rising 40-week moving average line. If MMM closes below $165, it will break the chart support at that level and probably precipitate further declines. The weekly OBV line has been gently declining since July and suggests that sellers have been more aggressive. Last, the weekly Moving Average Convergence Divergence (MACD) oscillator crossed to a liquidate-longs signal at the beginning of September. We would take a risk-off strategy on MMM until we see prices stabilize and the OBV line start to rise.