Morgan Stanley (MS) has built a nice base and has been pushing above resistance for the last week. There are a few more clues that I like on the chart. The Relative Strength is just starting to break out above 6-month highs and the SCTR has moved above 75 which puts it in the top quartile for price action.
The price has broken above the horizontal resistance layer. The PMO keeps accelerating higher which suggests a nice uptrend.
While everything looks a little stretched here, this looks like it is setting up for a nice long position. Trading it against $29.50 as a stop looks good.
About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).
Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018).
Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs.