Morgan Stanley (MS) edged lower in recent intraday trading as the stock attempts to rebuild positive momentum that could support a recovery. At the same time, the pullback is helping the stock work off its overbought conditions on the momentum indicators, particularly as fresh bearish signals continue to emerge. The latest decline has brought the stock back to its 50-day Simple Moving Average (SMA), which is acting as dynamic support and reinforcing the stability of the primary medium-term uptrend. Price action also continues to follow a short-term ascending trendline that supports the prevailing bullish bias.
Therefore, our outlook remains bullish for the stock's upcoming trading sessions, particularly if it breaks above the current resistance level at $206.70. Under this scenario, the stock is expected to target the next resistance level at $232.25.
Today's price forecast: Bullish.