3M signals a potential rebound
Shares of US industrial giant 3M are showing signs of a potential rebound following a strong rally that pushed the stock to an eight-year high during the summer.
The shares began climbing in March, with momentum accelerating after 3M raised its annual profit outlook in July. Despite a pullback over the past month, Reuters technical analysis suggests that price action around key support levels may indicate weakening selling pressure.
Technical indicators also suggest that downward momentum could be losing strength. 3M shares fell to a two-month low of $160.27 on September 14, while the Relative Strength Index (RSI) did not make a corresponding new low, creating what technical analysts describe as a positive divergence. However, these indicators are technical signals and do not guarantee that the stock will resume its upward trend.
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