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Morgan Stanley (MS), is a leading financial services holding company, that offers services to corporations, governments, financial institutions, and individuals worldwide. The company operates three business units: Institutional Securities, Wealth Management, and Investment Management, providing a range of services from capital raising to investment management products. MS is listed on NYSE and is a component of the S&P 500 under Financials.
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On a longer timeframe, MS has been bouncing between $72 and $100 since 2021. The price rallied up to hit an all-time high at $106 on 10 Feb 2022. However, the reaction was a sharp decline and broke the support of $91.50 on 17 Feb. This was accompanied by an increase in volume suggesting the presence of supply. The Wyckoff sign of weakness (SOW) continued until early March and the price then traveled in a down channel for several months.
The downtrend continued until MS had a Wyckoff spring at $72 followed by two tests before starting a strong rally. The low volume pullback during the rally suggested decreasing supply.
Nevertheless, the price was unable to hit $91.50 and again retested the low of the range. However, the price formed a higher low and started a Wyckoff sign of strength (SOS) rally in mid-October. On 30 Nov, the price broke above the resistance but could not commit above it, leading to a Wyckoff upthrust (UT). The reaction was a shallow pullback to around $83.50 suggesting bullish signs.
With earning results as a catalyst, the price gap is up with momentum on 17 Jan 2023. The price subsequently stayed committed above the axis of $91.50 and few of the bars showed demand tails in a bullish Wyckoff backup setup.
Bias
Bullish. According to the Wyckoff method, MS is now attempting to break out of BU and will continue to rally to challenge the all-time high of $106. If successful at committing above that, the accumulation phase that started in 2021 would become the cause of a long markup phase E rally ahead.
If the price breaks below $91.50, it is likely to retest the support of $83.50.
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