Send me real-time posts from this site at my email
Fan Yang

Morgan Stanley (MS) in a Bearish Continuation Breakout

Last week, we saw Morgan Stanley $MS complete a triangle pattern and threatening to break below the triangle:

Morgan Stanley (MS) About to break Below Triangle Consolidation

This week, the breakout materialized:

MS Daily Chart

(click to enlarge)

Downside:
- As we mentioned last week, this breakout continues a bearish correction that started in March. 
- We basically had a price top, then a triangle, and now we are entering another phase in this correction.
- There is downside to $44 and $40, the next key support pivots. 
- When we look at the weekly chart, we can see that if price approaches $40, it will be approach the 200-week simple moving average as well. This $40-$41.15 area appears to be a critical level, where we can expect some strong support, especially, if the RSI shows some bullish divergence and is around 30. 
- Furthermore, resistance at $48 would further confirm the bearish scenario. 

MS Weekly Chart

(click to enlarge)

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue