3M Corp. (MMM) continues to sink lower and lower. The bears remain in control. Bounces are very feeble and not long sustained -- a sign that prices are probably headed still lower.
Let's check on the latest charts and indicators.
In the daily bar chart, below, we can see that MMM briefly made a new high in April before gapping sharply lower. Prices went from well above the 50-day and 200-day moving average lines to well below them.
Trading volume looks like it decreased from late December to the middle of April which is a sign of weakness but the On-Balance-Volume (OBV) line inched up over the same time frame suggesting that buyers were more aggressive.
In the lower panel is the 12-day price momentum study and we have yet to see the start of a bullish divergence.
In the weekly bar chart of MMM, below, we went back five years to get an idea on the potential downside for this stock. Next possible chart support begins around the $160 area but because it is further back in history it can be less reliable. Prices are below the declining 40-week moving average line.
The weekly OBV line has turned down and the Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this Point and Figure chart of MMM, below, we can see a potential longer-term price target of $120.
Bottom-line strategy: Prices might be oversold but I find no technical reasons to step in and probe the long side of MMM. The $120 area is our Point and Figure price target.
