MMM stock price was in a strong bullish momentum during the start of July 2023, rising from the low of $96 and forming a high near $113. The stock price surged roughly 18% from the low. The second quarter earnings report turned out to be a catalyst for the price.
3M reported second-quarter earnings on 25 July and was successful in beating the estimates of revenue as well as earnings per share.
The bullish move was halted after the price reached near $113. Currently, the price has melted and closed below the $100 psychological level. The stock price has formed a support at $98.50 and it retested the $100 level.
If bears can push the price below $98.50, it might head down toward the next support level of $96. On the other hand, if the price can close above $100 and the follow-up momentum occurs, it might rise toward the $105 resistance level.
3M Earplug Settlement
Veterans States that 3M and Aearo Technologies (a company acquired by 3M in 2008) produced earplugs that failed to protect their hearing from noise damage. 3M and the plaintiff’s attorney are nearing a settlement that would resolve the claims of more than a hundred thousand cases by veterans. The case surrounds the earplugs made by the company and how the subsidiary failed to protect from hearing loss.
3M would pay nearly $5.5 Billion, people close to the discussion said. Negotiation is going on and the final amount has not been established yet. Recently, 3M has agreed to pay more than $6.5 Million to settle the U.S. foreign corruption probe after marketing employees of a China-based subsidiary took healthcare officials on secret tourist excursions to the U.S. and Australia.
Will MMM Stock Price Continue Falling?
The stock price has slipped below 20, 50, 100, and 200-day exponential moving averages, implying bearish momentum. Chaikin money flow (CMF) score has dropped below the 0 mark and currently stands at -0.25 indicating strong weakness in the market.
The relative strength index has also dropped below the 50 mark and stands at 37.76 suggesting bearish momentum in the price. The bands of Bollinger have expanded indicating a rise in volatility. MMM stock price has reached near the lower band of Bollinger which indicates the possibility of a short-term pullback.
Conclusion
The market structure and price action of MMM stock have turned bearish after the price faced rejection near $113. The stock price has also broken the major psychological level which indicates how strong is the bearish momentum.
Technical parameters favor the selling side. The earplugs’ settlement will have a significant effect on the stock price.
Technical levels
- Major support: $96 and $93
- Major resistance: $105 and $113
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/28/3m-company-mmm-stock-will-earplug-settlement-cause-meltdown/