- The 3M stock price slid 7.02% over the past month.
- MMM stock’s price action indicates the heavy dominance of bears.
- MMM stock closed at $87.52, with a past intraday loss of 1.27%.
The 3M Company’s (NYSE: MMM) stock price has been on a downtrend since the release of the second quarter report and it melted about 24% over the past three months. It dragged down towards the $85.58 support level while forming continued lower lows from its initial high of $113.07. Currently, the price is trading beneath all the significant EMAs, indicating that the price is in the bears’ grip.
In the higher timeframe, the MMM stock price faced immense pressure from the sellers, which shattered the price by about 28% from its annual high of $129.90. There was no bullish intervention observed during the downtrend, as the price was consistently moving downwards. Hence, it went down near the $90 mark, forming a solid support level at $92.38.
However, after attaining a support level of $92.38 on the very next day, the trading volume skyrocketed by about 14.16 Million. This indicates mass participation of buyers, which provided a much needed hike of 11.44% on June 2, 2023. This triggered a positive sentiment in the market, and the price jumped to the $113.07 resistance level while following the uptrend. In order to recover the year-to-date losses, the price had to break the hurdle of $129.90, but the bulls failed to sustain the uptrend and the price was halted at the $113.07 resistance level. On July 25, 2023, the company released its Q2 report, which caused the sellers to step into the market. As a result, the MMM stock price shifted to a downtrend again.
Currently, the MMM stock price has closed at $87.52 while witnessing a decline of 1.27% during the past intraday session. The year-to-date return of 27.98% has diluted the price drastically. Moreover, the market capitalization of 3M Co. is $48.33 Billion, with an average trading volume of 3.40 Million.
Q3-2023 Report Of 3M Co.
3M Co. announced its third-quarter financial report on Oct 24, 2023. The company’s cost-cutting push by the company’s CFO, Monish Patolawala, helped to beat Q3 consensus estimates. The company posted a revenue of $8.02 Billion, beating the estimated figure of $7.99 Billion, delivering a surprise of 0.34%.
Meanwhile, the Q3 reported earnings of $2.68 per share surpassed the estimated EPS of $2.343, with a positive surprise of 14.38%. Despite the stellar quarterly results, the company still faced weak demand for consumer electronics, especially in China and Europe. After the release of the Q3 report, the MMM stock price bounced back to the $90.83 mark but failed to sustain that resistance level. The relative strength index (RSI) has been trading below the 50-neutral zone since mid-September 2023, indicating weakness and the heavy involvement of sellers.
Conclusion
The market structure and price action of 3M stock were suggesting a prolonged downtrend in the market. Despite the pragmatic outcome of the last quarterly report, the stock price shows no sign of recovery. Traders and investors should look for selling opportunities as the technical parameters suggest the same.
Technical Levels
- Major resistance: $129.90 and $113.14
- Major support: $86.33 and $85.35
Disclaimer
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