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Morgan Stanley - (MS) - October 19, 2023

Investment bank Morgan Stanley (MS) has been steadily sliding down the rankings in the SIA S&P 100 Report since February. MS dropped out of the green zone in March, and spent the summer hanging around the red/yellow zone boundary.

In recent weeks, the shares have dropped deeper into the Red Unfavored Zone. In the last month, MS has lost 15.6% and fallen 15 spots in the rankings to 70th position. Yesterday alone, Morgan Stanley lost 6.8% as investors were disappointed by the company’s latest earnings report. This decline can also be seen as being related to negative sentiment toward Financials in general. Currently, there are no Financials in the Green Favored Zone of the SIA S&P 100 Index Report and Goldman Sachs (GS), Morgan Stanley’s closest comparable is also in the Red Unfavored Zone. For the last two years, Morgan Stanley (MS) shares have been range bound, trading back and forth in a sideways range between $70.00 and $100.00. In recent weeks, MS has turned downward, faltering at a lower high near $90.00, snapping an uptrend line, and falling back below $80.00, which has reversed polarity to become initial resistance. The channel bottom near $70.00 and the July 2022 low appears as significant initial support. A breakdown there would indicate that the current downswing has morphed into a potentially deeper downtrend with next potential support near the $60.00 round number based on a measured move.

Morgan Stanley (MS) shares have staged a decisive downturn this month. The shares peaked in February of 2022 and have spent the last eighteen months trading back and forth between $70.00 and $105.00. In February of this year, MS ran into resistance at a lower high near the $100.00 round number. After a late winter selloff, MS stabilized and attempted a summer rebound. Since peaking at another lower high in August, the shares have weakened dramatically. Earlier this month, MS completed bearish Double Bottom and Spread Double Bottom breakdowns and also snapped an uptrend line, with the shares falling back toward $75.00. Initial downside support appears at the July 2022 low near $69.35, followed by an uptrend line near $65.35 and a previous column low near $60.35. Initial resistance on a bounce appears near $81.25 based on a 3-box reversal.

With its bearish SMAX score falling to 2, MS is exhibiting weakness against the asset classes.

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