A Real Money subscriber has asked for an update on 3M Co. You ask, I deliver.
When we reviewed 3M Company (MMM) back on January 20 we we wrote that "MMM... may eventually do better when investors sense that the economy is indeed going to do better, but at this juncture in time the charts and indicators suggest further sideways price action."
MMM traded sideways into early March and then began a nice rally.
How do the charts look now?
In this updated daily bar chart of MMM, below, we can see that the shares rallied into May/June but were unable to sustain strength above $205. The shares are trading above the 50-day moving average line but the trading volume has not expanded to tell us that the rally is gaining momentum.
The daily On-Balance-Volume (OBV) line has turned sideways from early June and is not foreshadowing new price highs at this moment. The Moving Average Convergence Divergence (MACD) has turned upwards and could soon cross the zero line for a buy signal.