MMM trade ideas
MMM - Discount Buy or No?Find the commentary from the chart below:
In general, the stock paints a bullish picture but there are also things that could indicate that it would rather trend downwards at least for some time.
Bullish points
-Stock is currently above the 120 moving average which has served as a support level since 2011 on weekly chart
-Stock is currently In an uptrend and hence current downward move may be a correction and oportunity to buy in the larger trend
-The 188 support level is intact, and has held since it was formed & the short term resistance level at 212 just got broken last week and so there is some bullish interest in the stock
-Dividends have experienced increase by 15% this year (from 1.11 -> 1.18 last year -> 1.36 now this year for each quarter)
-Quarterly actual earnings and earnings estimates have all been growing along with stock price and hence it can be inferred that the company is expanding and may continue to be profitable for at least the next few years (longterm outlook idea)
Bearish points
-The price behavior with 120 moving average this time around has been sharper, larger and more aggressive this time around without truly breaking and testing 120 moving average; this could mean the moving average break is rather yet to come and so more patience should be had (if so an entry with a smaller position can be made, and then more size added as trade begins to work)
-Stock has a long way to break out of 255 in order to confirm uptrend, but waiting for price to reach there from its current price at ~212 would mean you would miss the uptrend move in this case; this could be a good idea to exercise patience, but the aggressive correction I already mentioned could mean the very early stage of a shortterm downtrend at least with 255 being the peak price (simply put, because of the price behavior, you would be safer buying from support and deciding to add or close trade after stock reaches 255 rather than waiting for move to 255 and then buying into breakout).
-The 188 support level has been intact since it was formed, but it can break with pressure of earnings & a true test of 120 moving average; if these price tests occur and are strong enough, it could set the stock up for a downtrend.
-Dividends and earnings growth may indicate future longer term growth and NOT shorter term price action; even though the "numbers" of the company may look nice, it may be moving upward now as a sympathy play since sector (XLI') is also doing well right now.
(This stock will not be traded as part of paper portfolio challenge)
Let's follow MMM' to see how it plays out!
Thanks!
3M (MMM) Bear Flagging into EarningsIn this January bullish market, bear flag breakdowns have mostly led to flat lines rather than massive drops, but given 3M's China business, and a week already full of dismal earnings reports, it can be expected that this bear flag will play out as a minor decline in the short-term stock price. There is fresh demand in the low to mid 180's, and even if it falls below our target of 187 (very possible), it will likely bounce back into a mid-range demand zone.
I'd short it with or without earnings tomorrow.
MMM:NYSE Bullish Shark MMM Bullish Shark
Market: MMM
Time Frame: 240
Predicted Direction: long
I will order pending buy stop at @192.11
goal @204,35
SL @182.89
MMM updates will be available in the comments section below.
The brief trade analysis presented above is my predicted direction and requires multiple different indicators and confluence factors prior to validating a trade opportunity.
3M - Macro outlook and planI am starting to develop a framework for how I manage my portfolio.
Here is a glimpse into the TA/FA view, and summaries I am preparing for each chart, to always know where I'm at, relative to a company I'm invested in, or any asset I might be speculating.
Charts will be directly associated with a spreadsheet, where I'll organize my asset mix, sizing, and positioning.
$MMM Rising Wedge Pincher PLAY w/ 200 MA LOOMING!$MMM is your stock if you like rising pincher plays.... trend lines on price action shown in black on this chart... treding upwards and making higher highs and higher lows, but the 200 MA is looming of SO many stock within the DOW30 right now on these DAILY charts... if it is respected by the price action... the likely outcome will be prolonged stagnation moving forward with expectations of a solid 2019 fiscal year ahead within the US economy.... IF THE 200 MA gets busted with som UMPF... well the price will then climb in my opinion... watch how the price busts out of the rising wedge demonstrated by the trend lines in black... if price goes through upward trend line; expect BULLS TO RUN... if bottom wedge/trend line is busted... TIMBERRRRRRRR! lol
