Current trend

In the middle of last month, shares of 3M Co., an American diversified innovative manufacturing company, reversed from the upper limit of Murrey’s trading range of 102.13 (Murrey’s [5/8] level) and began to decline. Currently, the price has broken into the negative part of the main trading range and is testing 96.88 (Murrey level [3/8]), however, to continue a significant decline, it will need to consolidate below the reversal level of 93.75 (Murrey level [2/8]). In this case, the quotes may reach 87.50 (Murrey level [0/8]) and 81.25 (Murrey level [–2/8]). After a consolidation again above 100.00 (Murrey level [4/8]), supported by the middle line of Bollinger bands, the quotes may return to 106.25 (Murrey level [6/8]).

Technical indicators point to a continuation of the decline: Bollinger bands and Stochastic are reversing downwards, while the MACD histogram is increasing in the negative zone.

Support and resistance

Resistance levels: 100.00, 106.25.

Support levels: 93.75, 87.50, 81.25.

Trading tips

Short positions may be opened below 93.75 with the targets at 87.50, 81.25 and stop loss around 98.50. Implementation period: 5–7 days.

Long positions may be opened above 100.00 with the target at 106.25 and stop loss around 95.50.