The 3M Company (MMM) has been embroiled in a lawsuit over their earplugs for the U.S. military. Reports indicate a settlement was reached Monday and the stock price has rallied. Let's see how this may change the charts and indicators.
In this daily bar chart of MMM, below, I can see that an opening in the $104-$105 area will mean that prices have rallied back above the 50-day moving average line. Prices will still be below the declining 200-day line and that indicator is more important for investors. Trading volume has been "uneventful" the past year and suggests that prices have not reached a level or area that is attractive.
The On-Balance-Volume (OBV) line has been in a slow decline as sellers of MMM have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of MMM, below, I see a bearish picture. Prices trade below the declining 40-week moving average line so the major trend is down. The weekly OBV line shows a longer-term decline. The MACD oscillator is bearish. The candles have yet to make a bottom reversal.
In this daily Point and Figure chart of MMM, below, I can see an upside price target in the $140 area.
In this weekly Point and Figure chart of MMM, below, I see the same price target of $140 as seen on the daily chart above.
Bottom line strategy: MMM could rally in the short-run but the bigger picture is not promising at this point in time. MMM probably needs more base building before a sustained advance can get underway.
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