Bank Stocks Getting Slammed: Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) shares are dropping to test the neckline of a six-month head-and-shoulders reversal pattern.
A breakdown here would set a downside target of $33, which would be worth a 18% decline from here. It also would take out the 200-day moving average for the first time since last July and mark the first significant reversal in a powerful uptrend that started last summer.
Shares more than doubled into the high set in March, driven by hopes of higher long-term bond yields (boosting margins) and a relaxation of Dodd-Frank regulations. The company also enjoyed revenue and profit beats April 19, with earnings of $1 per share coming in 10 cents ahead of estimates.