3M Is Almost as Boring as PPG, So Buy It
- Posted by Greg Harmon
- on July 31st, 2012
Yes 3M, $MMM, the maker of those sticky note pads, among other things, is a stock that is waking up and boring like PPG Industries, $PPG, from yesterday. Moving up over long term resistance at 90, shown on the daily chart below, it has support for further upside from a bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is positive. It is above all of the Simple Moving Averages (SMA) another plus and building a bull flag at the gap from August 2011. A break above the flag over 92 has a Measured Move to 96, all time highs. The monthly chart adds an interesting perspective. It has been rising in a channel since 2005 with a
3M, $MMM, Daily
fall out of the channel during the financial crisis and now holding it again. This channel gives it room higher to at least 98 and the RSI on this time frame also supports more upside, along with the MACD that is about to cross to positive. Finally the 3-box reversal Point and Figure chart carries a price objective of 104. Up at those levels, 96, 98 or 104, the possibility of an Inverse Head and Shoulders with a slanted neckline starts to come into play. If it were to move straight higher over the neckline the price objective would be at least 148. Need a reason to get in now? How about the 2.6% dividend yield. A couple of small trades, or the big kahuna, the choice is yours in this potential beauty.
3M, $MMM, Monthly
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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