3 Big Stock Charts for Wednesday: 3M, Darden Restaurants, and Exxon Mobil

Stock Market

The headlines make the world go around, at least when it comes to stock trading. The news wasn’t so great in March but it might be getting better in April, and stock prices seem to be reflecting this. Today’s big stock charts showcase names that got some of that good news.

Source: Shutterstock

Encouraging news can apply to the stock market overall, but sometimes specific companies get an extra boost due to a news-based catalyst. Three companies in particular enjoyed some very good news on Tuesday.

As you’ll see, this led to impressive gains for long-biased traders with these three stocks. The big stock charts will help us to determine if they can continue to rally in the days ahead.

3M (MMM)

MMM stock

Source: Provided by Finviz

Shareholders rejoiced on Tuesday as 3M (NYSE:MMM) struck a deal with President Donald Trump to deliver 166.5 million respirator masks to the U.S. That could be good news for nation, but does the first of our big stock charts indicate more gains for investors?

  • There’s a megaphone chart pattern here, which indicates widening price movements. Tuesday’s candlestick is close to the middle of the megaphone, so that’s neutral.
  • The middle of the megaphone happens to be a support/resistance line at $155. It’s resistance until the stock breaks above it, so now’s not an ideal time to take a large position.
  • If you do take a long position, you’ll definitely want to take profits at $180. The chart indicates some fairly strong resistance there.

Darden Restaurants (DRI)

DRI stock

Source: Provided by Finviz

It’s amazing to consider that Darden Restaurants (NYSE:DRI) could thrive in this worrisome environment, but the company just announced a spike in to-go orders for its Olive Garden and LongHorn Steakhouse restaurants. Let’s see if this translates to delicious gains for stockholders.

  • Monday and Tuesday served up two consecutive inverted hammers. Those tend to be moderately bullish, so this puts shareholders at an advantage.
  • There’s a double-bottom pattern forming and it’s slanted upwards. The higher low is established, so bulls want to follow this up with a higher high.
  • If the stock gets there, taking profits at $120 would be wise. This level has provided both support and resistance before.

Exxon Mobil (XOM)

XOM stock

Source: Provided by Finviz

Traders took a shine to Exxon Mobil (NYSE:XOM) stock on Tuesday as the company announced that it has plans to reduce its capital-spending program for this year by 30%. Shareholders can only hope that this cost-cutting measure will facilitate a much-needed turnaround in the stock price.

  • Don’t be fooled: the overall trend is still to the downside. Confirmation is needed to determine whether this is a head-fake or the real deal.
  • The round number $50 will be psychologically significant to traders of this stock. A high-volume break above that number would be very bullish.
  • It’s interesting that the stock bounced almost exactly off of $30 not long ago. Look for a double-bottom pattern if it gets there again.

As of this writing, David Moadel did not hold a position in any of the aforementioned securities.

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