3M Corp. (MMM) is a household name. Some of the charts have improved since early October but the worst may not be behind us.
Let's check out the charts and indicators to see what's happening with the stock.
In the daily bar chart of MMM, below, we can see that the shares are in a one-year downward trend and trade below the declining 200-day moving average line. Prices made a low in early October and have rallied into November but have been correcting while staying above the rising 50-day moving average line.
The On-Balance-Volume (OBV) has been flat for much of the past 12 months but a sharp move down in late August has not been "repaired." The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal and is only slightly above the zero line.
In the weekly Japanese candlestick chart of MMM, below, I have trouble finding any bullish clues. The shares are in a longer-term decline and trade below the negatively sloped 40-week moving average line. Prices have retraced about 50% of the previous decline so this is a natural place for the market to stall.
The weekly OBV line shows a long decline from the middle of 2021. Sellers of MMM have been more aggressive than buyers for months now. The MACD oscillator has crossed to the upside for a cover shorts buy signal but it remains below the zero line and an outright buy signal.
In this daily Point and Figure chart of MMM, below, we can see a potential downside price target in the $116 area.
In this second Point and Figure chart of MMM, below, we used weekly price data. The same $116 price target is seen here on the weekly chart.
Bottom-line strategy: MMM has rallied from early October. It is possible that prices rally to test and even break the declining 200-day moving average line but the Point and Figure charts have bearish price targets. A pullback to the $115 area may be a buying opportunity but I want to watch and wait for now.
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