• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Buyers of Morgan Stanley Should Wait for Renewed Strength Before Jumping In

Let's review the charts and indicators, and then revisit them in a few weeks.
By BRUCE KAMICH
Oct 16, 2020 | 10:40 AM EDT
Stocks quotes in this article: GS, MS

The action in the financials doesn't tell the whole story, Cramer wrote in his recent column. When it comes to the banks, there are actually three tiers, he said, and there's a big difference between the best and the worst.

At the top of the pile are the investment banks of Goldman Sachs (GS) and Morgan Stanley (MS) . These banks don't have huge loan losses and their wealth management businesses are on fire, Cramer noted. 

 
Let's check out the charts of MS today. 
 
In this daily bar chart of MS, below, we can see that prices have been moving sideways to slightly higher since June. Prices are now above the declining 50-day moving average line and above the basically neutral 200-day moving average line.
 
The On-Balance-Volume (OBV) line has moved sideways since July but looks close to making a new high for the move up. A rising OBV line would tell us that buyers of MS are being more aggressive.
 
The Moving Average Convergence Divergence (MACD) has crossed to the upside from below the zero line for a cover shorts buy signal. If MS crosses the zero line it will be an outright go long message.  
 
 
In this weekly bar chart of MS, below, we can see a mixed picture. Prices are above the 40-week moving average line but the slope of this indicator is still negative.
 
The weekly OBV line is up from their April low but also well below the highs seen at the beginning of the year.
 
The weekly MACD oscillator has crossed to the downside for a take profits sell signal.  
 
 
 
In this daily Point and Figure chart of MS, below, we can see a $59 price target but we can also see some overhead resistance using the volume by price bars (left scale). 
 
 
 
In this weekly Point and Figure chart of MS, below, we can see a potential downside price target in the $42 area. 
 
 
 
Bottom line strategy: With a bullish daily Point and Figure chart and bearish weekly chart I do not feel confident enough to recommend a long trade at this point in time. Let's keep an open mind and revisit the charts in a few weeks.
 

(Goldman Sachs is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells GS? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Markets | Stocks | Technical Analysis | Trading | Banking | Financial Services | Mad Money | Brokerages

More from Investing

In This Market, If You Can't Beat 'Em, Join 'Em

James "Rev Shark" DePorre
Jan 26, 2021 5:50 PM EST

There is no way to know how long this theme of strong small-cap speculation and short squeezes will continue, but I have no interest in fighting it.

Is Live Ventures Taking Notes From GameStop?

Bruce Kamich
Jan 26, 2021 3:09 PM EST

Let's see what we might glean from the charts.

Ranpak Holdings May Double or More in 2021

Bruce Kamich
Jan 26, 2021 2:35 PM EST

Here's what aggressive traders should look for.

Jim Cramer: Ready, Set, Go!

Jim Cramer
Jan 26, 2021 1:30 PM EST

Here's why you should wait for a dip -- not the vaccine glut -- to start buying.

Let's Dare to Take Another Look at GameStop

Bruce Kamich
Jan 26, 2021 1:25 PM EST

Here's what we found in the latest GME charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • 08:05 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/26/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login