Stock of the day: 3M
15 July 2024
The 3M Company chart is starting to show promising signs of a potential bullish breakout. Over the past year, the stock has been moving within a sideways trend, forming a symmetric triangle pattern marked by orange lines. Last week, the first indication of a positive shift appeared as the price bounced off monthly lows and successfully broke above the green downtrend line. This breakout is the initial step towards a potential buy signal, suggesting that the bullish sentiment might be gaining momentum.
Currently, the stock is aiming for the upper boundary of the symmetric triangle. While the price remains within this formation, overall sentiment cannot yet be classified as bullish. However, a decisive breakout above the orange horizontal resistance would signify a strong buy signal, inviting traders to go long. Monitoring this resistance level is crucial as it will likely determine the next major move for the stock.
Conversely, if the price fails to break the orange resistance and subsequently falls below the green downtrend line, this would be a clear signal to sell. Despite this possibility, the recent positive movements indicate that a bullish scenario is more probable at this point. Let's see how the price action unfolds in the coming days.