Don't Ignore This Chart

3M Holds the Breakout Zone $MMM

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3M (MMM) is helping itself and the Dow Industrials with a breakout in mid September. As a price-weighted average, the stocks with the highest price carry the most weight and MMM, which is the third highest-priced stock, accounts for around 6.5% of the Dow. On the price chart, the stock broke out of a triangle consolidation with a sharp advance in mid September and then fell back over the last two weeks. Prices are holding above the breakout zone (gray area) and this means the breakout remains bullish. Short-term, a small falling wedge formed and MMM is on the verge of breaking the upper line. The indicator window shows the Accumulation Distribution Line (ACDL) hitting a new high today and this means buying pressure remains strong. A close below 205 on the price chart would warrant a re-evaluation. 

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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