3M Stock Attempts to Topple Technical Ceiling After Upbeat Forecast

The company just lifted its third-quarter sales forecast

Deputy Editor
Sep 15, 2020 at 10:21 AM
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    3M Co (NYSE:MMM) is attempting to extend its three-day win streak, but was last seen down 0.5% at $167.64, after the blue chip name forecast third-quarter sales that came in higher than analysts' expectations. The company also posted August sales that rose 2% to $2.7 billion, lead by its Health Care unit. 

    MMM has been inching back toward its eight-month peak of $170.42, though pressure at the $170 level continues to act as a ceiling on the charts -- previously thwarting a rally attempt back in June. The year-over-year breakeven level has also kept a lid on the shares. On the upside, however, underlying support at the 30-day moving average appears to be firmly in place. 

    Analysts are still hesitant on MMM, with eight calling it a "hold," and two saying "sell." Plus, the 12-month consensus price target of $163.47 is a slight discount to current levels. 

    Option traders, meanwhile, are singing a different tune. In the past two weeks, 4.56 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio falls higher than 89% of all other readings from the past year, suggesting a healthier-than-usual appetite for long calls of late. 

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