3M Company (US: MMM) rebound on 23^rd March 2020 looks promising after it formed a strong bullish candle the following day. However, the following bullish rise was met with slowing momentum. Based on the recent technicals, the rebound is more of a correction and the stock is on course for another bearish impulse move.

1. Evening Star Formation candlestick rejecting the resistance level at 150.59, with the Wednesday candle closing strongly below the 50 moving average.
2. Price action suggests that before the evening star formation, the prices between 7^th April – 14^th April attempt to get past the resistance level at 150.59 was met with failure and this signify the lack of bullish momentum to create a new high.
3. The overall trend is still downtrend as prices are trending in a series of lower highs and lower lows.
4. Death cross is still valid as prices have been trending below the 50 and 200 Moving averages.
5. Stochastic Oscillator shows signs of overbought after the K and D line crosses above the 80 overbought level.

*The technical call is valid for 3 weeks only.

CHART LEGENDS

Simple moving average

Red line = 200 SMA Line

Blue line = 50 SMA Line