3M Company is a diversified technology company with presence in the industrial and transportation; health care; consumer and office; safety, security and protection services; display and graphics, and electro and communications businesses. 3M operates in six business segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics, and Electro and Communications. 3M products are sold through distribution channels, including directly to users and through wholesalers, retailers, jobbers, distributors and dealers in a number of countries worldwide.
To review 3M's stock, please take a look at the 1-year chart of MMM (3M Company) below with my added notations:
From the start of the year until May, MMM had been consolidating within a sideways, Rectangle pattern. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For MMM, the Rectangle pattern formed a $90 resistance (blue) and an $85 support area (navy), which was also a brief resistance in January. As you can see, half way thru May MMM broke below the support and has been struggling to get back above $85 and stay there.
The Tale of the Tape: MMM has broken down from an $85 to $90 Rectangle pattern, but has pushed slightly back above $85. A long trade could be entered on a pullback to $85 or on a breakout above $90. A short trade could be made on a rally up to $90 or on a break back below $85.
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