Swing Trade Idea (MMM) – June 15, 2023
OptionsPlay’s bearish trade for Tuesday, June 15th is 3M Company (MMM). MMM is part of the Industrial Sector, which has performed at 5.14% over the last month, with MMM underperforming relative to its sector at 1.45% over the same period.
MMM is trading below a long-term key level of $105, and is respecting this level as resistance on multiple retests. As it has reached an overbought condition and is showing signs of weakness, we believe that MMM will not trade higher over the duration of this trade.
As a close, if MMM were to trade above $104 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $5.12.
