Shares of MMM look to be forming an inverse H&S pattern that looks it could be a favorable setup for the bull camp. It's deeply oversold with an R.S.I. reading of 22.9 and is holding the neckline support, so I think it's headed higher.
Shares are in the buy zone right now at $185, which is the neck of the pattern. Look for minor resistance around the gap down at $197-200. I doubt this will pose much of a challenge for the shares, although it may provide another buying point.
Major resistance comes in at the target of the pattern at $218-224, which I believe will be reached prior to the next earnings release on July 25th.
Set your stop-loss beneath the head, around $177-179. That gives you a nice risk-reward ratio... -$8 (-4.3%) to the downside and +$39 (+21.8%). That's a 5.1:1 bullish ratio. I'm a buyer for sure!
Shares are in the buy zone right now at $185, which is the neck of the pattern. Look for minor resistance around the gap down at $197-200. I doubt this will pose much of a challenge for the shares, although it may provide another buying point.
Major resistance comes in at the target of the pattern at $218-224, which I believe will be reached prior to the next earnings release on July 25th.
Set your stop-loss beneath the head, around $177-179. That gives you a nice risk-reward ratio... -$8 (-4.3%) to the downside and +$39 (+21.8%). That's a 5.1:1 bullish ratio. I'm a buyer for sure!