3M Co. (Friday’s close US$179.01) declined from US$259.77 in January, 2018, to US$114.05 in March, 2020, (A-B) below a falling trend-line (dotted line) and below its falling 40-week Moving Average (40wMA).
The stock rallied above the falling trend-line (C) and above its 40wMA, which is now curling upward. The recent rise above ±US$180 (shaded area) suggests the start of a new major up-trend (D); a sustained rise above this level would confirm it.
Behaviour indicators including the rising 40wMA and the rising trend-line (sold line) confirm the bullish status. There is good support near US$162-US$163 only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$210 and US$230. Higher targets are also visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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