MMM Long-term outlook

3M Company is one of DJIA component which under pressure in the previous year as U.S and China enter a trade war. The share prices see no bottom yet this year as its reach as low as $159.32. To date, it losses around 25% of its value from the top $219.75. If the trade war continues again this year then we might see further pressure on the share prices.

At the current time, President Trump and China’s Xi Jinping are attending G20 meeting and scheduled to meet and discuss the agreement to end the trade war. MMM share prices movement will depend on the result of the meeting.

New Month

Monthly chart

MMM under pressure since the beginning of 2018, the share prices continue to make a lower low on the chart. Looking at the monthly chart, it seems major bearish correction is under progress and almost reach 50% Fibonacci Retracement level. The Fibonacci level lies near $150.00 where traders could look for long positions if it ever reaches the level. At the current time, the bear is waiting near the 38.2% Fibonacci Retracement level. Failure to climb above the level will trigger bearish continuation in MMM.

Weekly chart

The outlook of MMM on the weekly chart is not good as the share prices fell below weekly SMA 200. If it could continue upward and reach the averages then we might see rejection and continuation of a bearish trend. At the current time, the nearest resistance is the 38.2% Fibonacci Retracement level.

Daily chart

Zooming in the daily chart, the situation is not better than the weekly chart. MMM trend absolutely bearish for medium-long-term but the share prices currently under bullish correction. It soon will reach 38.2% Fibonacci Retracement level and the blue 50 SMA line. A rejection from the resistance is expected.

Trade plan

Long positions: Wait until the share prices turn further lower. The best level to look for long positions is $150.00 or the 50% Fibonacci Retracement level.

The short position could be taken near the 38.2% Fibonacci Retracement level.