MS finds buyers at key support level
Morgan Stanley (MS) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
MS finished Thursday at 54.87 edging lower $0.10 (-0.18%) on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MS as at May 17, 2018):
Thursday's trading range was $0.81 (1.48%), that's below last trading month's daily average range of $1.07. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being above average.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle.
After trading as low as 54.34 during the day, the market bounced off the key support level at 54.63. The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 55.17 in the previous session, Morgan Stanley ran into sellers again around the same price level today, failing to move higher than 55.15. After trading as low as 54.34 during the day, the share found support at the 100-day moving average at 54.53.
MS shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 55.64 where further buy stops might get activated.