Morgan Stanley has pulled back sharply following a rally November and December. Does the weakness represent an opportunity for dip buyers?
The first pattern on today’s chart is the “golden cross” of the 50-day simple moving average (SMA) above the 200-day SMA. That may reflect an improvement in the longer-term trend.
Second, prices appear to have stabilized near a 50 percent retracement of their recent surge.
Third, MS is slightly above the $82 area that represented support in the first three quarters of last year.
Fourth, stochastics are trying to rebound from an oversold condition.
Finally, prices on Friday dipped slightly below Thursday’s low before rebounding above the previous session’s high. That kind of bullish outside candle is a potentially bullish reversal pattern.
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