In my last post (here), I described a useful price/volume relationship in volume off the high. I was looking at a number of stock charts this morning, and came across the chart for 3M (ticker MMM). This chart could be an example of volume off the high.
What you saw in trading on 9/10 was 3M's shares trading within 5% of the 12-month high, based on 9/7 close. The stock traded off by more than 2% on volume of 6.4 million shares. This volume is more than 2x the average volume in the shares. This occurred on no news and may indicate a major seller in the shares. Given this setup and looking at the swing points, I would not be surprised to see 3M trade down to $84.
What you saw in trading on 9/10 was 3M's shares trading within 5% of the 12-month high, based on 9/7 close. The stock traded off by more than 2% on volume of 6.4 million shares. This volume is more than 2x the average volume in the shares. This occurred on no news and may indicate a major seller in the shares. Given this setup and looking at the swing points, I would not be surprised to see 3M trade down to $84.
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