3M Stock Hits 52-Week High, But Enters Overbought Territory

Scotch Tape maker 3M Co MMM is on a roll.

The St. Paul, Minnesota-based company clocked a fresh 52-week high of $129.99 during Wednesday trading. 3M stock has seen a phenomenal 40.20% gain year-to-date, a hefty 56.56% rise over the past year and a solid 22.84% jump in the last month alone.

But, is the rally sustainable? Let’s take a look at what the charts have to say.

Bullish Technicals Fueling The Rally In 3M Stock

Chart created using Benzinga Pro

3M's technical indicators are signaling a strong bullish trend:

• Eight-Day SMA: The stock is trading above its eight-day simple moving average of $127.36, suggesting a strong bullish signal.
• 20-Day SMA: At $126.11, the stock’s price comfortably above this moving average further confirms bullish momentum.
• 50-Day SMA: With a price of $129.11 versus a 50-day SMA of $111.86, the trend remains robustly positive.
• 200-Day SMA: The stock's price well above the 200-day SMA of $93.78 continues to reinforce the bullish outlook.

Read Also: Why ARKK Stalled As QQQ Took Off: Harsh Lessons Over Past 5 Years

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is showing a strong bullish signal at 4.85, supporting the overall positive trend.

Meanwhile, the Bollinger Bands (25), ranging from $103.79 to $139.60, have the stock trading within the upper bullish band — indicating bullishness. This aligns with the stock’s recent performance.

Caution: Overbought Concerns

Despite the bullish signals, 3M's Relative Strength Index (RSI) is at 73.20, placing the stock in overbought territory. This suggests that while the stock has performed exceptionally well, it might be ripe for a correction or a period of consolidation.

3M's stock is hitting new highs, driven by strong technical indicators and bullish moving averages.

However, with the RSI indicating overbought conditions, investors should be mindful of potential short-term adjustments.

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