Morgan Stanley (MS) was known "back in the day" for its swagger under the leadership of John Mack. On Thursday morning the financial services firm reported an EPS and revenue miss and shares were trading lower. Some trading prowess and swagger could be useful now with the stock in a downward trend.
Let's check the charts and indicators.
In this daily bar chart of MS, below, we can see that prices have tumbled lower this year. Prices found support around $95 in late 2021 but that area turned into resistance when the area was broken on the downside. A rally failure at $95 in March set the stage for further declines. MS is trading below the declining 50-day moving average line and that line has been acting as resistance for several months. The slope of the slower-to-react 200-day line is negative (bearish).
The On-Balance-Volume (OBV) line has been weakening since the middle of February as traders have been more aggressive sellers with heavier trading volume happening on days when the stock has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish but also shows a bullish divergence from March to June.




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