3M Co (NYSE:MMM) is collapsing today, dropping to
$180.14 -1.28 (-0.71%). This is following an all-time high
yesterday. While most investors marvel at the stock move and want
to buy, it is probably one of the freakin' biggest shorts or sells
out there in the universe. There are so many negative indicators on
all time frames that I literally get excited (in more ways than
one) when I look at it. There are 4 key factors on the charts that
give confirmation to this theory, all of which indicate that a drop
of 25% is in the cards. Let's go over all of them right here so you
can make an informed decision on this trade...
1. There was a bull flag on the daily chart going
into yesterday. This normally signals significant further upside.
Yesterday, the stock surged early, then gave up 100% of the move to
close flat. Technical traders understand this signals a failed
breakout. Failed breakouts usually result in a significant sell
signal. Coming off all-time highs, this could mean a multi-year
high and 20% correction in the next six months.
2. The weekly chart has a 3 bar surge. Three bar
surges on any charge usually signal a pull back is on the horizon.
However, a weekly three bar surge, coming at all-time highs can
mean a multi-year high pivot is in place.
3. The monthly chart on 3M has seven green candles
higher. This means that for seven months, the stock traded up. For
hardcore InTheMoneyStocks PPT Methodology investors, this is
insanely significant as it shows a 95% chance of a drop in the
stock when matched with all the other signals
discussed.
4. Lastly, on the monthly chart, connect the highs
from 2003 to 2014-2015. If you extend the trend line it hits the
highs on the chart perfectly. This is just one more epic sell
signal for $MMM
Gareth Soloway
InTheMoneyStocks