Chart of the Week: Morgan Stanley
Good morning everybody. Happy Wednesday! It’s time for our chart of the week. And this week we’re gonna be focusing on Morgan Stanley; symbol MS. Let’s take a look at this chart. It’s doing pretty nicely right now.
As we know – what is your definition of an uptrend? It’s a series of higher highs and higher lows. And we can see that that’s pretty much been the case here for Morgan Stanley since the middle part of May. It made a bottom here in the low $80s and it’s made a little bit of a higher low in August and a little bit of a higher low in September.
But what’s nice about this chart here is you see that it broke through some stiff resistance last week at about the $103 area, which was the high at the end of August. <Tony barking in the background!> Pulled back down. Tested that level of $95 and right back up again. And we see good relative strength making higher highs and higher lows already.
It’s not overbought of course. We’re not up near that 70 level. We do see good strong money flows into Morgan Stanley. And the MACD is on a buy signal as well.
Notice all the strong volume days
But what I’ve found interesting is, we’ve seen some good volume trends for the past couple of months. Look at the volume bars over here. You can just eyeball it, and see that on some of the strong days we’re having very high volume days. So what does that mean? That simply means that big institutions are accumulating the stock of Morgan Stanley.
Now they don’t have earnings coming up for another couple more weeks – the second week in October I believe. So we may see a little bit more fireworks, a little bit more excitement here in Morgan Stanley. But among the six or seven big investment banks – JP Morgan, Goldman Sachs, Bank of America, Wells Fargo – I would say by and large Morgan Stanley is probably the best-looking chart of them all.
And more recently it did hit an all-time high at about $108 back in July. It peeled right back off. There were no buyers up there at all. It came right back down again.
Of course we had that big drop in the markets in August. And of course, Morgan Stanley was a victim of that big drop as well.
But it came back down really hard in about three days from about $105 to about $91. Good 15% move down. It bounced right back. That’s gotta say something. That tells you that there’s interested buyers in here. It’s got strength as well at these lower prices. Even if it pulls back, it’s got some buyers down there in that range between $91 and $102.
Take a look at Morgan Stanley here. We think it’s got some higher prices. I think ultimately the stock, probably by early – middle of 2025, will probably get into the $120s or so.
All right – that’s Morgan Stanley.
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