MMM Buy OpportunityMMM is currently down 18%-20% from all time highs and is offering buyers a good discount to buy the stock here below the 50day moving average and above the 200 day moving average. The moving averages are beginning to curve higher/ signaling that the stock should continue to go higher. As the overall U.S stock market has made new highs, this is a good option for an investor to buy "a dip" in a strong company and in strong economy. Feel free to comment.
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4MMM trade ideas
Long Term Bear Market ? If a five wave impulse is done, we should expect 'at least' a three wave correction (at the same degree) to unfold.
The beginning of wave (1) starts from March 2009 at $32.28 and if this year's top ($258.51 in January) is the end of wave (5), a multi year correction (or bear market for 3M) will be inevitable.
Note:
The length wave (5) equals approx. total distance from the start of wave (1) to the end of wave (3)
RSI made new lower highs when price moved into new higher highs
3M Short in the boxWaiting for a hit of the upside green box (labeled 4), for a short targetting 5 down. This will put me on watch for a long term bottom
With respect to what I said in MMM Micro -- the linked idea - the clue was the fact that the first wave up didn't hit my desired green target, and now we have staged a very corrective looking move up. This has put me on high alert in terms of a good potential to seeing lower lows
3M has more room for downsideOne of today's top losers is MMM (NYSE), after the results came out the sell off began, even thou the earnings met projections.
There is still some room for the downside, I will keep an eye out for this one and if it hits the trend line it may be worth getting into it, on a ride back to 240 levels.
Large scale look at MMMI actually am not doing anything with it. Just sharing.
This is the massive pic of the 3M stock. Note that there is a large scale channel down pattern. However, I think that it will get squeezed in between the resistance of that channel down pattern and the Fibonacci retracement level, which is shown on the chart.
MMM ShortI did a discounted cash flow valuation on 3m assuming a revenue growth rate of 5%, in line with 10, 5, and 3 year historical averages and it produced a valuation of $135. A 41% downside valuation... When I saw this I questioned the legitimacy, but played around with revenue growth rates and found, that, to justify it's current valuation of $236.55, MMM would need to see top-line growth of 12% YoY.
Leave a comment and let me know what your thoughts on MMM are, for now I'm short them, but would love to hear some other view points.