It’s cracking support
Traders,
3M Company made the bear list in our weekend Scouting Report. Here are four reasons why.
- It’s in a downtrend across all time frames. The sinking 200-day, 50-day, 20-day, and 9-day moving averages confirm this.
- Shares are down 17% year-to-date, even as the S&P 500 is up 7.6%. That’s some serious underperformance.
- MMM is testing a significant support zone at $100. We’ve seen multiple bounces here in the past. A breakdown will occur if the bulls don’t defend their turf this go around.
- There’s room to fall under this zone. $87 is the next monthly support zone.
Friday’s low of $99.27 is a potential trigger. The June $105/$110 bear call is trading for 60 cents if you want a higher probability cash flow trade. Alternatively, the July $100/$95 bear put trades for $2.
Chart of the Day: MMM
MMM hasn’t been sub-$100 since the beginning of 2013.
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