This Is A Strong Growth Stock You May Want To Hold

This growth stock has made its fortunes from the treatments of oncology patients. Its flagship product, Cabozantinib, treats metastatic medullary thyroid cancer, hepatocellular carcinoma, and advanced renal cell carcinoma (RCC). We’re talking about Exelixis, Inc. (Nasdaq: EXEL).

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Source: Chokniti Khongchum

This same product has remained a growth driver for the company going forward. The U.S. Food and Drug Administration (FDA) approved the use of Cabozantinib in combination with Nivolumab, a high-performing drug from Bristol Myers, to fight advanced RCC. This exposes the EXEL stock to more growth opportunities.

Exelixis isn’t just depending on Cabozantinib to drive its growth, however. It has lined up several pipeline products that have the potential to boost the company stock should they make it to the market. XB002, for instance, is one of these pipeline products, and the FDA has approved its Phase 1 trial to treat Advanced Solid Tumors.

What do Exelixis’ figures look like?

Total revenues for Q2 FY 21 soared to $385.2 million by 48% year on year. This growth had so much to do with the increase in sales of the powerful combination of Cabometyx (cabozantinib) and OPDIVO (nivolumab). We expect the sales to increase going forward and maybe help the stock surpass its 2021 financial guidance of $1.3 billion in total revenues.

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Source: Exelixis

We believe EXEL is a strong growth to invest in, even though it may have to squabble for patients with Afinitor and Sutent for its flagship product in the US. There are only about 14,000 patients in the U.S. However, Exelixis has other promising projects that may offset this slight problem

Technical Analysis

The only direction the EXEL stock has known for about two decades now is sideways. It remained in a consolidation it started in 2003 between the $1.10 – $2.9 support and $12.34 – $14.35 resistance levels. When it finally broke out of the resistance level in 2016, it only came back to get stuck in between this new support level (the previous resistance level) and a new $23.7 – $25.9 resistance level.

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The stock now approaches this resilient resistance level that once again, having failed to break it after multiple trials. We’ll see how this attempt goes, but we currently don’t have many reasons to believe it will break it this time.

How then do you trade such a stock? You simply await a breakout or a return to the support level, whichever comes first. This places our Buy levels at slightly above the $12.34 – $14.35 support level price level or somewhere above the $23.7 – $25.9 resistance level.

Option Positioning

$EXEL is not a heavy volume option trading stock with only 27K calls and 14K put options out there, so our data points will only have so much ‘robustness’ to them.

With that being said, 61% of those options are expiring this Nov op-ex (19th) so we may have some headwinds lurking as we get closer to that date.

Option positioning suggests support around the $15 range.

FULL DISCLOSURE: Chris Capre currently has pending orders in $EXEL. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Or you can get access to Chris Capre’s entire trading portfolio by becoming a subscriber to Benji Factory.

Nvidia Is Already Big. But It Could Get Even Bigger

Nvidia Corporation (Nasdaq: NVDA) already has over $600 billion in market cap. It’s a massive company by all reasonable definitions. But we have compelling reasons to believe it could become even bigger.

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Source: Athena

Since its invention of GPU, Nvidia has found its way into just about any computational device needed for heavy computations.

Like its huge strides in the development, manufacture, and sales of GPU is not enough, the company dipped its toes in the networking hardware and software industry, artificial intelligence, and data analytics. Each field is massive, and customers abound for companies the standard of Nvidia. In fact, the company estimates its data center market to be up to $100 billion three years from now.

We could go on and on about the strong fundamentals Nvidia has. But we’ll use the company’s figures to summarize what we think about the stock.

Nvidia’s revenue grew by 66.7% to $6.5 billion year/year according to the company’s Q3 FY ‘22 report. About half of this growth was driven by the sales of gaming GPUs, with this department raking in $3 billion. Not far behind is the company’s data center market, which saw a 35% year/year growth to $2.4 billion. These two market platforms, including 3D design, AI, and self-driving cars, make up the company’s growth drivers.

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Source: Nvidia

Enough about the fundamentals. Nvidia looks even more attractive on the stock charts.

Technical Analysis

All-time highs almost mean nothing to the NVDA stock, as it has broken its most recent all-time high for the 5th time this year alone. And it doesn’t look to be out of gas yet. On the weekly chart, the stock creates a new trendline and then redefines it, and then redefines it again.

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Zooming into the stock on the daily chart, we see how the stock orchestrates a breakout from the $228 – $235 resistance level after a strong push from the bulls, as denoted by the strong spike in volume on the breakout candle.

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For traders who intend to trade the stock short term, we recommend you wait for a retest of the $228 – $235 support level and buy around $239 – $241. However, if you’re holding on to the stock for your dear life, you can go bullish immediately. We believe the potential gains from awaiting the retest will be negligible 10 years from now.

Option Positioning

There are currently 1.05M calls and 1.1M put options with about 20% of those options rolling off this Friday. We’re seeing option support coming in around $230 which matches up to the first layer of support in the price action above.

FULL DISCLOSURE: Chris Capre currently has pending orders in $NVDA. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Or you can get access to Chris Capre’s entire trading portfolio by becoming a subscriber to Benji Factory.

No Stock Likes The Holidays More Than Etsy.

Covid-19, as unfortunate as it was, brought a silver lining for certain businesses and accelerated already existing trends. The industries that benefitted, thanks to this pandemic, made more profit than they had pre-COVID-19. Etsy, Inc. (Nasdaq: ETSY) is one such company. And now that the holidays are fast approaching, things are about to get rosy again.

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(Source: Giftpundits)

Etsy, a platform where sellers sell their creative items to buyers, saw revenue reach new peaks in FY 2020 by as much as 110% y/y and net income soar by 264.2% y/y.

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(Source: Etsy)

Now, you could say that the revenue growth has dwindled post-COVID-19, and it’s understandable. Many people have returned to buying their items from brick and mortar stores and Etsy sales have taken a hit.

But with the holidays fast approaching, it’s that time of the year when Etsy has much to smile about. People are going to want to buy creative gift items for their loved ones, and Etsy offers them just that. The company’s annual report testifies to this usual spike in sales around the last quarter of every fiscal year. For instance, you’ll notice that there’s a drop in revenue from Q4 of 2020 and Q1 of 2021 despite a strong Q1.

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(Source: Etsy)

But what’s the outlook of Etsy stock post-holidays?

If there’s any reason to believe that the Etsy stock wouldn’t continue its bullish charge, the positives around the company definitely outweighed it. According to the business structure Etsy adopts, the company makes it easier for sellers to sell items they would otherwise have problems selling anywhere else. As a result, the company can extend its tentacles deep into the cultures of its users, since they basically run what’s being sold and bought on the platform.

With its four marketplaces (Etsy, Reverb, Elo7, and Depop), Etsy aims to improve its attractiveness to wider arrays of targeted customers, such as people in Gen Z. Etsy also continues to make new improvements to its platform to improve customer retention rates and to squeeze more engagements out of their buyers and ultimately cause them to spend more on the platform. The results of the company’s effort are evident in its 22% y/y growth in buyer frequency in Q2 2021.

Technical Analysis

The Etsy stock has mounted a challenge on its previous all-time high, and it has one. It has attained a new all-time high of $256. However, it hasn’t quite completed its breakout from the $241 – $252 resistance level.

No Stock Likes The Holidays More Than Etsy 04

There isn’t much to analyze on the Etsy stock anymore. Everything points to the continuation of the bullish run. We have only to wait for the stock to complete its breakout and soar into new and uncharted territories. However, if this breakout fails and the price falls below the resistance level, the stock may rally on the support trendline to mount another attack on the resilient resistance level.

Option Positioning

Currently there are around 75K call and 102K put options in ETSY. There are no short-dated expiries with massive positions and the major strike option traders are looking at is not till Jan 22. Currently option positioning suggests support around $200 which is  currently in between our two levels, but may provide a good liquidity zone for traders to get long.

FULL DISCLOSURE: Chris Capre currently has no stock or options trades in $ETSY If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Or you can get access to Chris Capre’s entire trading portfolio by becoming a subscriber to Benji Factory.

The Dip We Are Watching Right Now

Software automation of all sorts has been at the forefront of digital technology for a long time, and it will continue to be that way. And one sector that has enjoyed this automation is the accounting sector, thanks to companies like Blackline, Inc. (Nasdaq: BL)

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Source: Mikhail Nilov

Blackline creates a space for itself in the accounting industry by helping accountants handle smaller tasks, while the accountants themselves focus on more important tasks. The company offers software solutions that can handle control assurance, intercompany accounting, account reconciliations, transaction matching, journal entry, and others.

The solutions Blackline offers can be used across various industries, as long as accounting exists there. The customers it has in its books are some of the world’s biggest companies, including Spotify, Domino’s, Mastercard, and IBM. But the more interesting thing is that these big companies seem to be loyal to Blackline. The business runs on a subscription model and the renewal rate has never dropped below 97% since 2017.

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(Source: Blackline)

The growth opportunities for Blackline are massive. The accounting automation company estimates that it has a Total Addressable Market (TAM) of over $28 billion from 165,000 target customers. Of the TAM, Blackline has only claimed $387 million from about 3600 customers. Blackline intends to reach this market by gaining more customers, providing better solutions for existing customers, and through business expansion.

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(Source: Blackline)

Blackline also has solid financials to propel it towards these growth opportunities, with the company recording a 23% year-on-year growth in revenues in Q2 FY 2021.

Technical Analysis

BL is once again nearing its all-time high, having fallen short of it by about 35%. It found support on the $94 – $99.6 level, from where it is currently pushing against the $120 – $125 resistance level. If the stock breaks through this resistance level, it only has its all-time high to challenge. And we believe it can easily achieve this if all goes to plan.

The Dip You Should Buy Right Now 04

However, if the stock makes a U-turn from this resistance level, it could be stuck in the consolidation zone between the $94 – $99.6 and $120 – $125 levels.

Ultimately, we believe the stock has strong fundamentals to drive its growth and we hold a long-term bullish sentiment towards this stock.

Option Positioning

There are very few options out there in the universe for us to really comment on the option flows since they are less than 6K including both calls and puts.

FULL DISCLOSURE: Chris Capre currently has no stock or options trades in $BL If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Or you can get access to Chris Capre’s entire trading portfolio by becoming a subscriber to Benji Factory.

Intuit May Be The Next Intuitive Stock To Buy. Here’s Why

We will always need digital financial solutions as long as there are taxes to file and businesses to run. Intuit Inc, (Nasdaq: INTU) knows it, and it has taken advantage of it with its continual moves into the technology sector (i.e. software).

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(Source: Nataliya Vaitkevich)

Intuit has been a mogul in the tax and accounting software space for a long time, and it has constantly had to fight off competition to keep this position. Despite the fierce competition, at some point, with Microsoft, Intuit currently has the largest market share with two of its main products, QuickBooks (62%) and TurboTax (73%), This alone shows how tough the company is to beat, and companies like this are what we like to see.

The financials of Intuit aren’t flashy, thanks (or no thanks) to the pandemic. But they’re solid. At the end of FY21, INTU recorded a 25% year-on-year increase in total revenue to $9.6 billion. The net income also rose by 13% year-on-year to $2.1 billion. Every company needs sufficient cash flow to run operations and fuel growth. Intuit has more than enough of that, having ended the fiscal year with about $3.9 billion in cash, cash equivalents, and investments.

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(Source: Intuit)

Intuit is working hard to keep existing customers and attract new ones to its two largest products. This is evident in a feature Intuit rolled out which brings professionals onto the platform to help customers make complex accounting and taxing decisions.

The tax and accounting software company bought MailChimp and Credit Karma in the past 12 months in deals summing up to a little over $19 billion. While these acquisitions earned Intuit over 130 million new customers, the real meat of these deals is that they expose Intuit to new markets and new opportunities for growth.

Technical Analysis

The INTU stock is at a very crucial point on the charts now. The bulls are mounting pressure on the $580 – $605 resistance level, and there are two likely scenarios from here.

Intuit May Be The Next Intuitive Stock To Buy 03

The first scenario: The bulls win, break out of the resistance level, continuously create all-time highs until the next pullback.

The second scenario: The bulls falter and the bears force the price back below the resistance level. When this happens, the support trendline is a likely place for the price to fall back to. If this trendline doesn’t hold the price, the $412 – $437 support levels should do the job. But if these two fail to hold the price, the next support level is at $287 – $309.

Irrespective of what happens, we’re bullish on Intuit long term.

Option Positioning

Currently there are about 25K call options and 30K put options out there. We’re seeing short term option support between $565 and $580.

If you’d like to learn how we use options to generate monthly income, then check out our option trading course here.

FULL DISCLOSURE: Chris Capre currently has a long position on $INTU. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Or you can get access to Chris Capre’s entire trading portfolio by becoming a subscriber to Benji Factory.

This Snowflake May Become A Snowman In The Next Decade, But There’s A Catch

In an industry where behemoths rule, Snowflake Inc (NYSE: SNOW) has managed to gain customers, retain them, and produce immense growth statistics. This one is a proper growth stock, but for investors with behemoth risk appetites.

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Source: Egor Kamelev

Snowflake harnesses the power of the public cloud to allow organizations to save, share, unite, scale and manipulate their data. It also offers innovative AI solutions with which these organizations can analyze their stored data to produce growth-driving results.

One of the first things you look for in a growth stock is its growth potential, and Snowflake is not short of this. The cloud-based company estimates about a $90 billion market opportunity for its cloud data platform and its financial growth backs up this possibility. FY ‘21 saw Snowflake make a 124% year-on-year growth on its annual revenue from $265 million. Its Q2 FY ‘22 result also trumped its year-on-year result by 104% from $133 million.

This growth is massive by all standards and two things are going to be crucial if the company aims to keep it up. The first is the customer recruitment rate, and the other is the customer retention rate. Snowflake seems to be doing well in both crucial areas. The company has continued to gain more customers, with total customers growing by 60% year-on-year from Q2 ‘21, and Fortune500 customers growing by 34% in the same time. The retention rate is also massive at over 150% for 5 consecutive quarters.

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Source: Snowflake

If Snowflake manages to sustain even a half of this level of growth, it would at least double your investment within a decade. But the company may not go far if it cannot outsmart its giant competitors, Microsoft’s (Nasdaq: MSFT) Azure and Amazon (Nasdaq: AMZN) Web Services (AWS). Already, Snowflake has its platform based on these two bigger rivals. And unless the leadership of the company has something magical up its sleeves, Snowflake may never grow into maturity.

Another potential downside is that the stock is overvalued at the moment, and any bad news can send it falling like a snowflake to the ground. However, the stock remains a growth stock, and it still has the capacity to do what growth stocks do; grow.

Technical Analysis

The Snowflake stock just broke through a crucial resistance level ($323 – $332) and currently sits on it as a support level. We expect the price to continue its upward momentum from this level and maybe even challenge its ATH level of $430.

This Snowflake May Become A Snowman In The Next Decade, But There’s A Catch 03

However, if the stock breaks the support level once again to the downside, the next support level is at $255 – $265.

Option Positioning

There are about 100K calls and 105K puts out there on SNOW, so quite balanced. The next major expiration for the option traders out there is the Nov op-ex (19th), so no short term issues.

I’m seeing option support around $320 which lines up with our first support zone.

If you’d like to learn how we use options to generate monthly income, then check out our option trading course here.

FULL DISCLOSURE: Chris Capre currently owns $SNOW. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Everything Looks Set For This Stock. Time To Buy?

Cloud based software solutions may not be screaming “growth” like other industries in the tech space are. But they may be the hottest things in the coming decade as interconnectivity reaches its peak. The best time to get in on stocks in this industry is now. And you can start with Veeva Systems Inc. (NYSE: VEEV).

Everything Looks Set For This Stock. Time To Buy 01

Source: PhotoMix Company

Veeva offers cloud-based software solutions that help companies improve the efficiencies of their operations. The company currently focuses on client companies in the life sciences industry, a niche market where Veeva is without major competitors. It’s two major products are Veeva Commercial Cloud and Veeva Vault.

Veeva has enjoyed enviable success in the past years, with both GAAP and non-GAAP growth metrics trending upwards. The company offers its cloud based products to customers on a subscription basis which raked in about $1.18 billion in FY ‘21 (a 31.6% increase from the previous year). Service revenue climbed by 37.5% to $208 million in the same time.

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(Source: Veeva)

And in Q2 FY ‘22, the company has already secured a 29% revenue increase from where it was a year ago. Being the dominating force in its niche, it is easy for Veeva to build on its success for the coming years.

Technical Analysis

For a few months now, VEEV has been in consolidation as it returns to form a trendline with a point from over a year ago. In the past week, the stock returned to this trendline and has bounced up from it. The stock approaches the $328 – $340 resistance level, where it will attempt a breakout. If the breakout is successful, it’s an open sky for the stock. A new all-time high will be set, and new resistance levels will be set.

Everything Looks Set For This Stock. Time To Buy 03

On the flip side, there’s the possibility that the stock fails to break out of the resistance level but has enough momentum to infiltrate the underlying trendline. If this happens, the $173.5 – $186.5 support level would be a good place for the price to rally for another bullish push.

Option Positioning

Currently there are 26K calls and about 26K puts, so not a huge option volume stock in terms of positioning. Our first layer of option support comes in around the recent dip lows around $280.

FULL DISCLOSURE: Chris Capre currently has no stock or option position in $VEEV. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

This Could Be Headed For The Moon

Technology is a major part of our lives. We rely on it to order our favorite meals, keep track of our fitness levels, entertain ourselves, increase work productivity, and so much more. But technology itself relies on little devices called chips such as processors and memories. Some of the most prosperous companies in the last two decades have arisen from this industry. ASML Holding (Nasdaq: ASML) is one of them.

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Source: Pixabay

Based in Germany, ASML produces lithography machines that are used to etch circuits on chips, and they’re currently the largest producers of this service in the world. The customers they have in their books include huge tech kingpins like Intel (Nasdaq: INTC) and Samsung. Besides that, no other company apart from ASML manufactures EUV lithography systems which are used on the smallest chips.

The growth opportunities for ASML are just as massive as the growth potentials of technology. But 5G tech and cloud computing are probably going to be at the forefront in the near future. Self-driving cars, predictive healthcare, and smart homes and cities are heavily brewing in the corner. As far as we can see, ASML will not be short of growth opportunities now or in the future.

A quick glance at the financials of ASML and you can already tell the company is a winner. Despite the COVID-19 pressures of 2020, the company still finished strong. Growth metrics increased, with net income at €3.6 billion (38.5% from FY ’19), net income per share at €8.49 (37.8% from FY ’19), and total net sales at €14 billion (18.6% from FY ’19).

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Source: ASML

Already, the company is up and running this year, recording a year-on-year gross profit increase of 27.6% from FY‘20.

Technical Analysis

The ASML stock looks like it’s on a rocket to the skies. The price looks to have bounced back from the $633.69 – $670.02 support level, but it hasn’t even quite touched it yet. Although there’s no way to tell what exactly it’s trying to do, there’s, however, no doubt that the stock is on a strong bullish run.

This Stock Is Headed For The Moon And You Shouldn't Miss It 03

A trendline formed from November, 2020, and it currently holds the price. The price already looks to be bouncing from it, and this could be a sign of a trend continuation.

But if the price breaks the trendline, there’s another trendline that has formed underneath the first trendline. The $633.69 – $670.02 support level also awaits it. So, there are so many opportunities for the price to continue its strong bullish run, and we believe it will continue to do so.

Option Positioning

For such a large cap stock, the option volume isn’t gangster. Currently there are about 23K calls and 43K puts, but I’m guessing many of those puts are $ secured puts, which is actually bullish for the stock.

NOTE: We teach you how to trade the cash secured put strategy in our options bootcamp, along with 7 other option strategies. Click here to get access now.

Based upon current option positioning, the earliest we see support is around $740, and then $655.

FULL DISCLOSURE: Chris Capre currently has no stock or option position in $ASML, but he does have pending orders. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

Small-Cap, Huge Potentials. The Stock You Should Hold For The Next Decade

One of the industries that most benefited from the pandemic was the gig industry. A lot of companies laid off their employees to stay afloat. But these employees had mouths to feed and bills they couldn’t lay off, unfortunately. So what did they do? They went freelance!

Of the many freelance platforms that welcomed the troves of job seekers, Fiverr International Limited (Nasdaq: FVRR) was one of those with the lion’s share.

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(Source: Photo by Andrea Piacquadio from Pexels)

Fiverr is a freelancing platform where freelancers (or sellers, as the company calls them) package their services as products (Fiverr calls them gigs) for clients (or buyers) to buy.

The pandemic couldn’t have come at a better time for Fiverr, which had just had its IPO in 2019. Thanks to the influx of new users, Fiverr stock grew by over 1000% with a total revenue of $185.9 million at the end of FY2020.

This growth rate wasn’t sustainable, however. No surprises there. The effects of the coronavirus eased across the board and people returned to their 9 – 5 jobs. But the pandemic didn’t end without exposing us to the opportunities that abound in the gig economy.

Let’s view the company’s reports under a magnifying glass.

Fiverr reaped a revenue growth of 60% year on year in Q2 FY 2021 with the figures rising from $47.1 million to $75.3 million. In addition, every other key growth metric increased from pre-Covid times. For instance, the freelance platform increased its active buyers by 43% year on year. The average spend per buyer (SPB) also grew by 23% in the same period.

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(Source: Fiverr)

We expect that the gig economy will only get stronger. Statista backs this up, as it estimates that the gig economy will grow to take up about 50% of the US workforce by 2027.

Technical Analysis

With the Fiverr stock being relatively new, there isn’t much to say on the technicals yet. But you’ll see that the price is currently approaching the $128.65 – $145.68 support level. We expect this support level to reflect the price to the upside. But if the support breaks, there’s no other established support level available. This could force the price to a free fall until a new support level is established.

Small-Cap, Huge Potentials. The Stock You Should Hold For The Next Decade 03

Another thing you may notice is that the stock looks to have formed a typical bullish wedge pattern. And you may see this as another signifier of the bullish sentiment of the stock.

Option Positioning

While not a huge option stock by volume, currently there are about 35K calls and 28K puts. What is interesting is about 41% of those options are rolling off this Friday, so some potential tailwinds going into the weekend.

We see option positioning providing support between $145 and $160.

FULL DISCLOSURE: Chris Capre currently has no stock or option position in FVRR. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

The Dividend Stock You Must Have In Your Portfolio

When a company has a history of consistent increase in dividend yields for 25 consecutive years, it is called a Dividend Aristocrat. This is no easy feat and companies rarely make the list.

Then, there are Dividend Kings. These have a 50-year consecutive dividend yield increase. If being a Dividend Aristocrat was a hard feat, being a Dividend King is twice as hard. And our stock for today, 3M Company (Nasdaq: MMM), belongs to this proud category of stocks with over 60 long years of consecutive increase in dividend yield.

The Dividend Stock You Must Have In Your Portfolio 01

(Source: Photo by Lukas from Pexels)

3M Company has over 50,000 products in almost all industries. These companies fall into four major groups; safety & industrial, transportation & electronics, health care, and the consumer industry.

A major advantage of such a diversified product base is that the company can weather most economic storms and still come out on top. When revenues are not looking good in one industry, the company can always make up for it in other industries. That the company has raked in over 60 consecutive years of dividend yield increase is enough proof.

The revenue figures of 3M Company have also been impressive. When the company reported its Q2 FY2021 earnings, revenue had grown by 24.7% from the same period in FY2020. In the same report, the company recorded at least a 17.6% increase in organic growth in its four major industrial groups.

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(Source: 3M)

You should note that it’s not all good news at 3M at the moment, though. The dividend yield for the stock as we speak (October 2021) is down to 3.3% after the company has faced some harsh times because of the Coronavirus and raw material inflation. But the 3M Company is known for always being able to weather the storm. Hopefully, this time wouldn’t be different.

Technical Analysis

The 3M stock has pulled out of the consolidation it was in for a little over a year now. It broke out of the resistance level ($174.57 – $180.39) and now, it’s currently retesting the same level as a support level.

The Dividend Stock You Must Have In Your Portfolio 03

Once the retracement is complete and the price bounces off the retracement level, you may look to enter long positions on the stock. However, if this support level fails to hold, the next support levels are within $152.63 – $157.65 and $134.39 – $140.00. The price can gather enough strength to make a bullish challenge from any of these lower support levels.

Option Positioning

Currently there are about 90K calls and 100K puts, so a bit put heavy on the option positioning.

Short term there are about 55% of the options expiring this Friday, which may create a headwind for the stock into this Friday’s op-ex.

However after that, option support seems to be coming in between $168 and $175.

FULL DISCLOSURE: Chris Capre currently has no stock or option position in MMM. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.