Two Scenarios For Morgan Stanley (MS)

Morgan Stanley (MS) is testing a key uptrend line that lines up with its important 200DMA today. There are two scenarios to keep an eye on the charts.

Morgan Stanley (MS)
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One scenario is that the bears get trapped here at the break of this trendline and are forced to cover their shorts.

Morgan Stanley (MS)
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The second scenario to watch is the bears are able to break through the trendline and sell any rallies.

We can see XLF is not near its uptrend line. If it does pullback to that line MS traders might be facing the second scenario.

MS also has a VR level of 2.61 vs. SPX. Much more volatile than the index. Risk management is a must.

Morgan Stanley (MS)
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For Reference

Traders should apply the Seven Steps to Better Stock Trading. It is important to determine if there is a trend. One way to do it is to use my Total Indicator for eSignal. It’s free!