Analysis

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MS
Jan 19, 2021, 3:40 PM GMT
#Stocks

Morgan Stanley's Shares Testing a 13-Year Old Resistance

The earnings season in the U.S. is gaining speed, and Morgan Stanley is the next financial institution in line to report quarterly earnings for the three months to December 2020. The bank is set to do so tomorrow before the market open. JPMorgan Chase kicked-off the cycle last week.

Morgan Stanley's share price is currently consolidating just below a historically significant resistance level, which was last reached in June of 2007. This happened right before the debt bubble burst, resulting in the infamous credit crunch. As it happens, the price action is once again probing this crucial barrier just as Morgan Stanley is about to deliver its Q4 figures; an event that is bound to garner traders` interest, resulting in volatility upsurges. And all of this is taking place during a week that already looks poised to be quite eventful.

Morgan Stanley's stock price currently finds itself at a make-it-or-break-it point, and the expected increase in underlying volatility over the next several days could potentially jolt the strength of the broader bullish trend. Namely, the share price could very likely recoil from the resistance, and go on to establish a minor bearish correction before the uptrend can be resumed. The emerging setup can be utilised by bears and bulls alike, just in different ways.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
0 1.65 USD 6.01 USD 0
5.73%
Short Term
+ -
0 1.65 USD
Long Term
+ -
6.01 USD 0
Net % Gains
5.73%

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