MMM has now broken through resistance convincingly. I would long it at this point in time with a price target of 104 and time frame of 14 weeks. Dont think of this as an 87 dollar stock going to 104. Its a 8.7 dollar stock going to 10.4 and pays a dividend to boot.
Is your time frame just an average of the previous upswings and downswings before the breakout? Assuming that the peak is at 88.49 a 38% retracement would be about $84. Would it be a better decision to wait until it pulls back to enter? rphuga89
I counted the number of weeks it took to get from 67 to 85 and am assuming its a similiar timeframe. Its not pulling back and if it does it probably will not get under 86 without some type of market event or really bad news from the company. So its 18% up-room plus a dividend, about 1.1%. Almost 20% up-room in about 6 months. It will get there fundamentally speaking because: 1) Its an international conglomerate that operates in six segments: Industrial and Transportation; Health Care; Display and Graphics; Consumer and Office; Safety, Security, and Protection Services; and Electro and Communications. This is the type of company the street favors right now. 2) Its a member of the S&P100 which is the most bullish looking index out of the 100, 500, 400, and 600. 3) Dividend paying conglomerate that everyone seems to favor right now with all the worries about "bubbles".