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Morgan Stanley stock price slid 1.87% on Friday and closed at $83.29. - 2
Morgan Stanley’s stock price is showing weakness with concerns about future interest rate hikes. - 3
MS stock price slumped nearly 7% after the FOMC statement, thereby losing all the gains made in the past two weeks.
Morgan Stanley’s (NYSE: MS) stock price fell by 1.87% on Friday amid market jitters over possible interest rate hikes. The money from interest-rate-related activities, such as lending and borrowing constitutes one of the major sources of income for the banks. With the rise in rates, the bank’s borrowing costs may rise faster than its lending rates. This squeezes the bank’s net interest margin and hurts its profitability.
The Fed kept the rate unchanged at 5.25%-5.5% in September with no dissent. The dot plot showed no change in the median forecast of 5.6% for the end of 2023, suggesting one more hike this year. Morgan Stanley stock price analysis illustrates that the stock has been showing volatility over the charts with major ups and downs while also witnessing a sideways trend. MS Stock has a 52-week high of $100.99 and a 52-week low of $74.67.
Analysts offering a one-year price forecast for Morgan Stanley stock have a maximum bullish outlook of more than 34.4% that could lead the price to a high of $112. The analysts have an average outlook of 17.30% and a bearish outlook of 3.95%, which could drag the price to a low of $80.
Morgan Stanley stock derivatives’ data analysis states that the current implied volatility in the market is 27.44% with an increment of 0.22% in the last trading session. The at-the-money strike price of $83 has 331 open contracts on the put side and 435 open contracts on the call side indicating the dominance of the bears at the CMP.
Morgan Stanley Stock Price Shows Volatility Over The 1-D Chart
Currently, MS stock trades at $83.29 and shows the formation of a symmetrical triangle pattern over the daily chart. The MS stock price has slumped 7% in the last 3 days to close near the lower trendline of the triangle pattern on Friday. The stock price might try to recover on Monday if it opens with a flat or gap-up opening as the price has immediate support.
However, the breakdown of the immediate support may take the price to the lower levels of $80. The price has a declining momentum and might continue with this momentum if bulls fail to gain adequate strength on Monday.
Technical Indicators Show Sideways To Bearish Trend
Based on technical indicators, including RSI and MACD, the sentiment for MS stock is currently rated as a 64% “sell” with an average short-term outlook of maintaining the current trend. However, long-term indicators suggest that the ongoing trend is likely to continue.
Conclusion
The Morgan Stanley stock price dropped by 1.87% on Friday due to fears of interest rate hikes. The bank earns a significant amount from interest rate-related activities, but higher rates can hurt its profitability. The Fed did not change the rate in September and hinted at one more hike this year. MS stock has been volatile and has been moving in a sideways trend. It made a high of $100.99 and a low of $74.67 in 52 weeks. Analysts have a bullish outlook of $112 and a bearish outlook of $80. The stock closed near the lower trendline of a triangle pattern on Friday and may recover or break down on Monday.
Technical Levels
- Support levels: $82.86 and $81.22.
- Resistance levels: $89.48 and $92.32.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/25/morgan-stanley-stock-price-may-recover-this-week-as-per-analysts/