2024/12/12
Daily 4XSetUps - Good Sideways Trend Recovery In MMM
“bullish reaction and bearish reaction after last quarterly results!
apparently there is a calm before the storm before the next ones?”
In the case of
MMM , the earnings forecasts per share are higher today than they were seven weeks ago. This positive trend started on October 22, 2024 at a price of $131.73. Based on the growth potential and/or other metrics, the price appears appropriate - fundamentally neutral, if you will. Which is why MMM shares are trading close to its 40-day average (in a range of +1.75% to -1.75%). The value was previously subject to a negative trend (since November 19, 2024). The confirmed technical reversal point of +1.75% equals $133.82. The relative underperformance of the last four weeks compared to the SP500 is a remarkable -1.48%. So we as bullish traders and/or investors have to exercise patience. Because the SP500 seems to be more or less limping ahead around all-time highs, while the MMM stock is lagging behind - at least not falling. Fundamentally, there is no reason to throw MMM shares out of your portfolio as a trader and/or investor. Because a ratio between growth plus estimated dividend and P/E ratio of over 0.9 indicates a price discount compared to the normal price for the growth potential, in this case +3.31%. The return of +2.29% is well covered by the company's profits. Because the dividend expected for the next 12 months is expected to only be +34.06% of the profit.However, the company's business is no longer as self-sustaining as before - which is why the share price was punished so much after the last quarterly results. Because the expectations, i.e. the positive fantasy, were not fulfilled by the market, the majority of traders and/or also investors - and not because the company is not a profit-making machine in everyday life! It's not that we misunderstand each other? Because the actually realized profit growth of the
MMM shares, with growth of +11.57%, actually does not meet the market's expectations. But in every case, for every company, and even for every employee, expectations can be set so high that the expectations, based on numbers and/or other narratives, are not met! or?
“When a problem occurs, conduct the discussion at two levels: 1) the machine level (why that outcome was produced) and 2) the case-at-hand level (what to do about it).”
Ray Dalio
$141.34 : 2024/10/22 - October 2024 High
$140.72 : 2024/09/26 - September 2024 High
$135.34 : 2024/11/11 - November 2024 High
$134.99 : 2024/08/31 - August 2024 High
$129.77 : 2024/12/12 - last price action
$127.12 : 2024/09/11 - September 2024 Low
$124.83 : 2024/11/05 - November 2024 Low
$124.50 . 2024/10/25 - October 2024 Low
$119.31 : 2024/08/05 - August 2024 Low
As you will understand after listing the monthly highs and/or monthly lows since August 2024, the
MMM share has been moving more or less in a sideways trend. What is crucial is that the previous lows since August 2024, at $119.31, will not break down. So that we then have a solid price action consolidation zone - and can wait for the coming quarterly figures. Which will be released on January 28, 2025. Although the chart looks boringly sideways at the moment, there are some small subtle details that can give us bullish confidence. If we are to be realistically optimistic, the trend is likely to be upwards rather than downwards, but certainly only in small baby steps. Because the price action is still above the last monthly lows. And in the last two months, the last low before was even lower than the previous month. Therefore, the November 2024 low should hold, with $124.83, and thanks to the support of the lower October 2024 low, at $124.50, the price action could perhaps still turn out to be dynamically bullish.-------------------------------------------------
$150.00 : 2025/06/30 - Target Price
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$129.77 : 2024/12/12 - last price action
$128.00 : 2024/07/29 - Entry Price
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$111.00 2025/06/30 - Stop Price
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With best wishes
and with good intentions!
Aaron
“daily 4XSetUps - …” is pure information material!
By trying to give you even more information about some trading capabilities to trade and/or invest in some securities. This post is not a call to action - it only provides information. You decide (not) to decide. Even if I am writing daily 4XSetUps with concrete entry prices, target prices and/or also stop prices! It is like it is - like I said; You decide to respond to the analysis I just formulated to buy, to sell, or to do nothing! More information about my approaches to investing in something specific or just trading it, or even just describing it, can be found in the daily "Another 48h - DXY ...! Analysis Post. Where I try to track the price action in
DXY every day so that we learn something new daily.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.