Trade Setup: Buy/Long 3M CompanyType: Swing
On Tuesday 27 July, the company reported their quarterly results, with both earnings and revenue exceeding expectations, with net income of $1.524 billion, or $2.59 a share, in the second quarter, up from $1.306 billion, or $2.25 a share, in the year-earlier period. Adjusted per-share earnings were also $2.59, ahead of the $2.28 FactSet consensus. In addition, the company raised it's full-year guidance with as it now expects full-year sales to grow 7% to 10%, up from prior guidance of 5% to 8%. It also expects per-share earnings to range from $9.70 to $10.10, against prior guidance of $9.20 to $9.70.
With the earnings having been reported, traders are now able to take advantage of the potential upward swing in price as market participants latch onto the results.
A review of the daily chart sees the price looking to emerging from a 3-month consolidation range to continue it's gradual upward trend. The downward trend line extending back to the peak of 10 May is being cleared while the pivot is also being held. We also note the 7-day RSI trading at 63 (and clearing the downward trend line), which is considered a strong rank. In addition, the 50-day EMA is being reclaimed
Trade Levels:
Buy at current levels or better ($201.57 or lower)
Stop-loss: $196.15
Target: $212.00
