After its reversal to the upside on March 8th, the 3M stock (NYSE: MMM) managed to recover all of its losses made from the first day of the month. Now MMM is testing its key resistance area at 210.40, marked near the highs of February 13th and 26th. If we examine the period between the beginning of February and yesterday, the stock seems to be trendless. For now, we will remain cautiously-bullish, but before getting comfortable with the upside, we would wait until we see a break above the 210.40 zone first.
As mentioned above, a push above the 210.40 level would confirm a forthcoming higher high and could open the door to MMM’s next potential target, at 214.57, marked by the high of October 8th. This is where the share price could slow down its acceleration a bit, or even correct slightly lower. But as long as it remains above the 210.40 hurdle, we will continue aiming higher. If another attempt to break above the 214.57 barrier is successful, we may see the stock traveling further north, where it may find good resistance near the 217.24 level, which marks the high of October 3rd.
Having a quick glance at our oscillators, the RSI and the MACD, both are in support of the above-discussed idea. The RSI is above 50 and keeps on pointing higher. The MACD has just moved back above its trigger line and points higher, already sitting well in the positive territory.
Alternatively, if the stock moves back down and falls below the 205.50 support area, this might spook investors for a while, as such a move might open the door to the next potential hurdle, at 203.00. This might just be a temporary pit-stop for the share price before traveling further down. The 203.00 obstacle marks the high of February 6th. If MMM continues with its journey south, it may end up testing the 201.09 level, marked by the highs of February 11th and March 8th.
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