June 23 Chart of the Day - 3M
It was announced last night that chemical manufacturer 3M (MMM) will pay at least $10.3 billion to settle lawsuits over contamination of many U.S. public drinking water systems.
The company's stock price has suffered significantly this year falling from the $130 area to a recent low near $92.50.
In after hours trading the stock was up about 5% from yesterday's $100.43 close trading as high as $106.74.
But does the settlement mean that the recent lows indicate that the stock has found a bottom and set to march upwards from here?
Investors sure hope so but technically speaking maybe not...
From a price action technical analysis perspective there's more downside possible but not a sure thing. The weekly chart reveals that $87.88 is a potential line in the sand for the battle between the bulls and the bears.
Lower than that down below $70 is also a technical possibility.
Using a combination of traditional and advanced Fibonacci series, investors and traders can see the levels where a reprieve could take the price up to before potentially heading back to the downside. (To learn more about Fibonacci download our Free Guide: 6 Fibonacci Types that Create the Most Precise Price Targets and Reversal Zones)
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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