Morgan Stanley (MS) is scheduled to report their latest quarterly numbers Tuesday morning before the market opening following last week's reports from large investment banks such as JPMorgan Chase (JPM) and Wells Fargo (WFC) .
Let's check out our normal list of charts for MS to see how investors might be positioned.
In the daily bar chart of MS, below, I can see a neutral to positive setup. The shares have been trading sideways since late March. MS is now trading between the 200-day moving average line and the 50-day moving average line.
The trading volume looks generally steady. The On-Balance-Volume (OBV) line shows some strength the past four weeks. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line and is thus close to a new buy signal.
In the weekly Japanese candlestick chart of MS, below, I see a mixed picture. The shares are trading just below the 40-week moving average line. Some of the recent candles show upper shadows.
The trading volume is steady and the OBV line is firm. The MACD oscillator has narrowed and is close to a cover shorts buy signal. Taken together, all these signs are tilted to the upside, in my opinion.
In this daily Point and Figure chart of MS, below, I can see a potential upside price target in the $104 area.
In this weekly Point and Figure chart of MS, below, I see the same upside price target of $104.
Bottom-line strategy: I have no special knowledge of what MS will tell shareholders Tuesday. While I don't have a lot of confidence in recommending the purchase of MS ahead of earnings, I believe the bad news for MS and most financials is in the rearview mirror.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
