3M (MMM) is helping itself and the Dow Industrials with a breakout in mid September. As a price-weighted average, the stocks with the highest price carry the most weight and MMM, which is the third highest-priced stock, accounts for around 6.5% of the Dow. On the price chart, the stock broke out of a triangle consolidation with a sharp advance in mid September and then fell back over the last two weeks. Prices are holding above the breakout zone (gray area) and this means the breakout remains bullish. Short-term, a small falling wedge formed and MMM is on the verge of breaking the upper line. The indicator window shows the Accumulation Distribution Line (ACDL) hitting a new high today and this means buying pressure remains strong. A close below 205 on the price chart would warrant a re-evaluation.
Follow me on Twitter @arthurhill - Keep up with my 140 character commentaries.
****************************************
Thanks for tuning in and have a good day!
--Arthur Hill CMT
Plan your Trade and Trade your Plan
*****************************************
