Current trend

Shares of 3M Co., an American diversified innovation and manufacturing company, are trading in a correction trend at 131.00.

The management announced a change in the management. The financial director Monish Patolavalu, who held this position for four years, was replaced by the executive director of Otis Worldwide Corp. Anurag Maheshwari. Analysts consider this decision logical since during Patolavalu’s tenure, the corporation faced a huge number of lawsuits and a large-scale restructuring, which resulted in the separation of the healthcare business into a separate company.

The financial report confirms the company’s dire situation: revenue fell from 7.99B dollars to 6.30B dollars, and earnings per share amounted to 1.93 dollars, below 2.17 dollars in the same period a year earlier.

The quarterly dividend will be 0.70 dollars per share or 2.80 dollars annualized, with an annual yield of just over 2.2%. The payment is scheduled for September 12, the second after a major cut from 1.51 dollars per share, and the total dividend yield has decreased from 6.5%, negatively affecting investment demand.

Support and resistance

On the daily chart, the trading instrument forms an ascending channel with dynamic boundaries of 133.00–107.00.

Technical indicators are in a buy signal state, having slowed it down against correction: the AO histogram is forming correction bars, and the fast EMAs of the Alligator indicator are moving away from the signal line.

Resistance levels: 132.60, 142.10.

Support levels: 128.50, 119.40.

Trading tips

Long positions may be opened after the price rises and consolidates above 132.60, with the target at 142.10 and stop loss 129.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 128.50, with the target at 119.40. Stop loss — 132.00.