MORGAN STANLEY STOCK FALLS DESPITE RATING UPGRADE
Morgan Stanley’s stock is currently trading at 46.79-lower by 2.3% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.92%. The stock has continued falling after the opening bell.
Financial Services Company D.A. Davidson today upgraded the investment bank’s stock to buy from neutral with a $58 price target. The financial services company upgraded the investment bank’s shares as it sees Morgan Stanley’s higher market levels, active retail investors, and strong capital markets activity to fuel returns beating its peers. D. A Davidson in February downgraded the stocks of Morgan Stanley saying that its E*TRADE acquisition would dilute book value.
The financial services company today also said that investor appetite for debt is increased due to the Federal Reserve’s corporate bond purchase program that is driving DCM and FICC trading volumes. Davidson is now expecting Morgan Stanley’s investing-banking business to post revenue climb by double digits year-over-year. Stocks of Morgan Stanley have fallen about 8% Year-to-date.
On the technical front, the RSI is currently at 54.1% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 40% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION- STOP SELL AT 46.75 TAKE PROFIT AT 46.25 STOP LOSS AT 47.00