3M Company - (MMM) - April 2, 2024 (Daily Stock Report)

by SIACharts.com

SIA Charts’ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.

We highlighted the long-term perennial underperformance of 3M Company (MMM) back in the December 15, 2023 edition of the Daily Stock Report, and since then, the stock is down 12.1%, while the S&P 100 Index is up 12.2% over the same period. The shares have been stuck in the Red Unfavored Zone of the SIA S&P 100 Index Report since April of 2019 and have been out of the green zone since April of 2018.

Yesterday, 3M completed the spinoff of its healthcare division into a separate company, and the stock jumped 6.0%.

While MMM remains in the Red Unfavored Zone of the SIA S&P 100 Index Report, by jumping 17 spots to 75th place, it has broken out of a relative strength downtrend and reached its highest rank since August of 2021, and its SMAX score increased to its highest level since September of 2021. A major breakout is underway in 3M Company (MMM) shares, which have ended a long-term downtrend, broken out of a base, and signaled the start of a new recovery trend.

After steadily sliding for two years, between early 2021 and early 2023, MMM shares spend the last year trending sideways between $70.00 and $90.00 building a base for recovery. Yesterday, MMM staged a breakaway gap and jumped above $90.00 for the first time since January of 2023, completing bullish Head and Shoulders base and Ascending Triangle patterns to signal the start of a new uptrend.

Initial upside resistance may emerge near the $100.00 round number, followed by the $110.00 to $115.00 area where a measured move and previous highs converge. Initial support moves up to the $90.00 breakout point from $80.00.

For over five years, 3M Company (MMM) shares had been under distribution, steadily retreating in a falling channel. This now appear to be over with a big breakout signaling the start of a new uptrend.

Yesterday’s rally by MMM shares up through $90.00 not only completed a bullish Spread Triple Top pattern, it snapped a long-term downtrend line dating back to the February 2018 peak, a technically significant upturn.

Horizontal and vertical counts suggest upside resistance may emerge in the $109.30 to $115.95 zone. Initial support appears near $86.15 based on a 3-box reversal.

With its bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) increasing to 8 out of 10, MMM is exhibiting short-term strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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