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July 25 Chart of the Day - 3M

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

3M (MMM), the iconic maker of Post-It notes and a vast array of industrial and consumer products is set to report earnings before market open on Friday July 26.

The company made headlines earlier this year because it has maintained a dividend for the past 100 years, with 64 consecutive years of increases. However, following the spinoff of its healthcare business, Solventum (SOLV), on April 1, 3M announced a significant change to its dividend policy so we wanted to review their chart from a price action technical analysis perspective.

We have featured over 250 Charts of the Day since May 2023 and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

3M monthly price action technical analysis review

On the monthly chart we can see that after setting its $217.20 all time high (ATH) back in late 2018 price has been falling in an orderly fashion making a series of lower highs and lower lows seemingly in search of a firm bottom.

The bulls have yet to step in with any lasting conviction.

Weekly Chart

3M weekly price action technical analysis review

 
On the weekly chart we can see with much more clarity the fall from ATHs and where price briefly shot up near $220 then reversed starting a downward series of lower highs and lower lows..

Trading around $103.75 earlier today price has been attempting to find a definitive bottom but has yet to prove it so far by not producing a series of higher highs and higher lows.

The market is implying about a $5.77 move in either direction as marked on the weekly chart by this Friday July 26.  Share price has risen during the week of earnings 6 of the last 8 quarters.

Could earnings later this week be the catalyst that definitively sets the bottom to raise price firmly back to the upside or will it continue falling?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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