3M shares signal potential renewed rally as technical indicators improve

Traders Union
All News
Financial News
3M shares signal rally

Highlights

3M's stock briefly dipped below the key 50% retracement support near $162 but quickly rebounded, signaling a potentially bullish outlook.
A bullish divergence between 3M's two-month price low of $160.27 on September 14 and a higher RSI indicates fading downward momentum.
3M faces resistance at $170, with potential upside targets at $184-$185, $195, $205, and the all-time high of $217.19 if momentum continues.

Technical signals point to a possible rebound

As reported by Reuters, chart analysis indicates 3M's rally from March remains intact despite a pullback that began late last month after a strong run accelerated in July when the company raised its full-year profit forecast.

One level closely watched by technical analysts is the 50% retracement of the stock's advance since March, which acts as a support area near $162. Although 3M briefly fell below that threshold over the past month, the stock did not remain there for long, which is viewed as a potentially bullish signal.

Another supportive sign comes from the relative strength index, or RSI, a momentum gauge used to assess whether a stock is overbought or oversold. When 3M touched a two-month low of $160.27 on September 14, the RSI did not make a matching low, creating a bullish divergence that suggests downward momentum is fading.

MACD, another commonly used momentum indicator, is also flashing positive signals for the stock, adding to the case that the recent decline may be weakening rather than developing into a deeper reversal.

Resistance levels shape the next market test

3M has since climbed back toward $170, a resistance level that may determine the stock's next move. A sustained series of closes above that mark would open the way toward the $184 to $185 area, where another band of resistance is located.

If that zone is cleared, technical analysts would then look to the $195 and $205 levels, followed by the stock's all-time high of $217.19 reached in 2018. Those price markers outline the potential upside path if buying momentum continues to build.

The bullish setup remains conditional, however. A drop back through the 50% retracement near $162 and below the September 14 low of $160.27 would undermine the recovery scenario and weaken the case for a renewed rally.

3M did not immediately respond to an emailed request for comment.

Our earlier coverage of the surge in U.S. Treasury yields explained how a rapid jump in benchmark rates can tighten financial conditions and put pressure on risk assets. We also outlined where stress can surface as borrowing costs reset higher, highlighting vulnerable pockets such as regional banks, utilities, homebuilders, and more opaque areas like private credit and debt-funded infrastructure spending.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.