Current trend

The stocks of the American diversified innovation and manufacturing company 3M Co. are trading in a corrective trend, being near the 98.60 mark.

The issuer managed to settle claims from the Organization of state Suppliers of drinking Water in the USA (PWS), and within the framework of the agreements of 3M Co. will provide financing for the restoration and purification of drinking water, as well as invest 10.3B dollars in projects over 13 years. Director Mike Roman also said that all production of PFAS chemical compounds, which was the reason for the proceedings, will be discontinued by 2025. The agreement is not an admission of liability, and if it is not approved, 3M Co. will be able to withdraw from it and continue to defend its rights in court. At the moment, analysts, in particular representatives of Mizuho Bank, believe that this will have a positive impact on the dynamics of the shares.

The financial report will be published on July 25, and, according to forecasts, revenue may reach 7.91B dollars, which is slightly lower than 8.03B dollars earlier, and earnings per share – 1.73 dollars, which is also lower than the previous 1.97 dollars.  

Support and resistance

On the daily chart, the price continues to be in the stage of forming a global descending channel with the boundaries of 101.30–88.00, reversing at the resistance line.

Technical indicators are in the state of a new sell signal, having begun to strengthen it: the AO histogram forms new descending bars, and the fast EMAs of the alligator indicator are still below the signal line.       

Support levels: 95.50, 90.00.

Resistance levels: 101.30, 107.30.

Trading tips

If the asset continues declining and the price consolidates below the support level of 95.50, short positions can be opened with a target at 90.00. Stop-loss – 98.00. Implementation time: 7 days and more.

If the asset continues growing, and the price consolidates above the local resistance at 101.30, long positions with a possible target at 107.30 and stop-loss at 100.00 will be relevant.