3M - possible breakout on the weekly with the MACD positive once again

Possible breakout on the weekly with the MACD positive once again

Taking a look at 3M after the company has received some upgrades over the past couple of weeks. Currently, its shares are trading at around $104.86 a share, they are down around 4.4% YTD. However, some institutions are starting to become somewhat optimistic about the company due to strong dividends and growth potential. From a technical viewpoint, we can see that on the weekly chart, last week was a strong week towards the upside. An engulfing candlestick that closed above both the 20 and 50-day moving averages tends to be an indication of bullish price momentum. The next point of resistance for investors now sits at $110.24, which is this year’s high point. A break and close above this level could really spur a rally higher towards the $120-$125 area in the mid-term. It could also be argued that the stock has formed a new higher low, with support now at $90.53. A break below this support would raise concerns for a slide back towards the major support of $85.29. Nonetheless, the technical indicators are now more positive than before with the MACD line crossing above its signal line and the RSI reading 57.