3M Close to Resistance

Published on Thursday, 09 September 2010 04:24 Written by Christian Paolinetti

New York, September 9th (TradersHuddle.com) - Shares of 3M Company (NYSE:MMM) are trading very close to calculated resistance at $83.71 with the current price action closing at just $82.75 placing the stock near levels that make it difficult to buy.

3M Co.(NYSE:MMM) conducts operations in diversified areas like telecommunications, industrial, consumer and office, health care, safety, and other markets. The Company's businesses share technologies, manufacturing operations, brands, marketing channels, and other resources. 3M serves customers in countries located around the world, with products like Post-it Notes, Nexcare bandages, and Scotch tapes. The company was formerly known as Minnesota Mining and Manufacturing Company and i was founded in 1902, with its headquarters in St. Paul, Minnesota.

3M's current stock range is defined by current calculated support defined at $78.4 and by the resistance level at $83.71, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for 3M, as the stock is well above support, however, as the stock pulls back towards $78.4 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $83.71 then traders will get an opportunity to enter 3M stock by establishing a position as the stock moves to a higher range.