3M - consolidation phase continues as earnings approach

Taking a look at 3M ahead of its earnings tomorrow. The company’s share price is still in a consolidation phase after potentially forming a new bottom in April. With the shares now trading around $103.08 a share after hitting an 11-year low in October of last year, the resistance in focus is now the price level of $109.25 followed by $113.20. $113.20 corresponds with the upper trendline of the channel drawn on the chart, a break above here may pave the way for some recovery in the longer term. We can see that the technical indicators are now shifting towards a bullish bias. The MACD is gradually rising and the RSI is almost in a neutral position as it reads 44. However, the earnings tomorrow could sour this momentum in the near term. Ideally, investors want to avoid any declines below $94-$95 as that may result in a sell-off back toward the lower trendline of the channel. This would create a higher level of caution where the current support base could be challenged. 3M is expected to report an EPS of $1.67 on revenue of $5.87bn.