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Morgan Stanley (MS)

Morgan Stanley stock forecast: buy or sell

Close on Oct 23rd, 2020
$51.87 +0.19%
3 months performance
2.80%
Published: October 23rd, 2020 - 5.24pm EDT

Morgan Stanley stock outlook

  • Morgan Stanley closed today at $51.87 after barely changing a 0.19%.
  • Morgan Stanley presented its financial report on October 15
  • Berenberg Bank and Smith Barney Citigroup posted hold ratings for Morgan Stanley on Monday, with an average target of $55.00

Disclaimer:
The viewpoints given in this article are personal and not recommendations for you to buy or sell shares. The author of this document does not have any knowledge of the individual positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for learning motives only

Morgan Stanley stock charts

Should I buy Morgan Stanley stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $MS stock a buy?

In the current situation of Morgan Stanley there is not any eligible buy setup. This doesn't mean we expect a selloff for $MS in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Morgan Stanley stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies let us to avoid rash decisions based on our personal emotions or the buzz that surrounds the market. We like very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups are not intended for selling short Morgan Stanley stock

As a golden rule, you must never mantain an operation that generates losses greater than those expected upon purchase. When to sell shares must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Morgan Stanley stock?

Currently, Morgan Stanley stock doesn't match any of our preferred sell setups, so if you hold Morgan Stanley stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Morgan Stanley stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 7 brokerage ratings were published for Morgan Stanley. General sentiment is bullish, with 4 out of 7 posting optimistic outlooks

Morgan Stanley ratings

Brokerage firmRating
Oct 5th, 2020
Royal Bank of Canada Strong buy
Oct 13th, 2020
JPMorgan Chase & Co. Buy
Oct 16th, 2020
Bank of America Strong buy
Oct 16th, 2020
Credit Suisse Group Buy
Oct 16th, 2020
DA Davidson Neutral
Oct 19th, 2020
Berenberg Bank Neutral
Oct 19th, 2020
Smith Barney Citigroup Neutral

Technical analysis

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

MS SMAs chart

Supports and resistances

Technical analysts use support and resistance levels as a way to spot price points in the stock price action that tend to behave as obstacles, preventing the price of shares to move in certain direction. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until meeting another support level. On the other side, a resistance level is where the price may find a curb as it rises. In the same manner, this means that the price is more liable to "bounce off" at this level, and if it finally ruptures this level, it will rise easily until it approaches the next resistance

The current resistances are:

  • R1: $52.21 (0.66% above)
  • R2: $53.14 (2.45% above)
  • R3: $53.28 (2.72% above)
  • The current supports are:

  • S1: $51.73 (-0.27% below)
  • S2: $51.49 (-0.73% below)
  • S3: $51.08 (-1.52% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. Essentially, the Bollinger Bands are bands that run around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on October 16, the price has been corrected downwards by 0.77%. The price is trading very close to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    MS RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The Relative Strength Indicator (RSI) has been between the levels of 70 and 30 for several weeks, and therefore, without this indicator really serving to help us make any decisions.

    MS RSI chart

    Earnings and financials

    On October 15, Morgan Stanley ($MS) had the quarterly earnings call and presented the fiscal third-quarter report. Morgan Stanley presented fiscal 3rd-quarter earnings of $1.66 per share on sales of $11.7 billion. The Wall St estimate was $1.28 per share on revenue of $10.6 billion.

    Compared to the same quarter last year, EPS was $1.27, so posted EPS means a increase of 30.71%.

    Morgan Stanley ($MS) is posting quarterly financial report next January 2021.

    MS revenues and profits chart