During mentoring last night, I pointed out a current setup in the weekly chart of 3M (MMM). There are a few technical pieces worth mentioning here....
1. The Type II Sell is pretty glaring. We've got nice divergence between the most recent Wave 3 and Wave 5.
2. Wave 3 is pretty much spot on to the 1.618 Fibonacci extension of Wave 1.
3. We've confirmed a double top pattern as October 2007 was the last time 3M was at these price levels.
I've used the Intermediate pivot from November 2010 as it gives the best Pearsons R value for a trigger. Regardless of whether you like the Type II Trade or not, this is one for the watchlist.....
Trade Smart...
~ Duane Gott
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