3M Stock: Another Elliott Wave Reason For Skepticism
EWM Interactive | Nov 11, 2018 07:45AM ET
2018 has not been very kind to 3M (NYSE:MMM) stock investors. The share price was hovering in the vicinity of $260 in January. Fast-forward to October 26th , it was down to $181.98 for a 30% plunge in just ten months.
Now let’s take a look at the 4-hour chart of 3M stock, which we shared with you on June 22nd, and see how the ending diagonal . Which leads us to the conclusion that the selloff to $181.98 wasn’t wave C/III either.
The new labeling we’d like to propose suggests the entire decline from $260 to $182 is a five-wave impulse in wave A/I. Waves (2) and (4) obey the guideline of alternation as wave (2) is a sharp rally, while wave (4) is an expanding flat correction. The five sub-waves of (3) and (5) are clearly visible, as well.
This makes us think the current jump from $181.98 to $204.27 so far is the beginning of wave B/II. The same logic applies here. A three-wave rally to the resistance of wave (4) near $220 can be expected, followed by another selloff to $180 or lower.
In conclusion, an impulsive decline indicates 3M stock has entered a downtrend. Lower levels can be expected in the long-term. The short-term outlook should provide investors with another chance to evacuate near $220 a share.
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