Morgan Stanley’s Downturn Is Over: Is It Time To Jump In?

Morgan Stanley (MS), a leading financial services holding company, that offers services to corporations, governments, financial institutions, and individuals worldwide. The company operates three business units: Institutional Securities, Wealth Management, and Investment Management, providing a range of services from capital raising to investment management products. MS is listed on NYSE and is a component of S&P 500 under Financials.

On a longer timeframe, MS has been bouncing between $72 and $100 since 2021. The price rallied up to hit an all time high at $106 on 10 Feb 2022. However, the reaction was a sharp decline and broke the support of $91.50 on 17 Feb. This was accompanied by an increase in volume suggesting the presence of supply. The Wyckoff sign of weakness (SOW) continued until early March and the price then traveled in a down channel for several months.

The down trend continued until MS had a Wyckoff spring at $72 followed by two tests before starting a strong rally. The low volume pullback during the rally suggested decreasing supply.

Nevertheless, the price was unable to hit $91.50 and again retested the low of the range. However, the price formed a higher low and started a Wyckoff sign of strength (SOS) rally in mid October. On 30 Nov, the price broke above the resistance but…