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Morgan Stanley’s CIO and Chief U.S. Equity Strategist Mike Wilson reacted to Kevin Warsh’s first Federal Reserve meeting, saying the new chair’s credibility may require letting markets experience some short-term pain.
Morgan Stanley invited listeners to tune into its latest Thoughts on the Market for more details from Wilson on the topic.
Morgan Stanley ($) is trading at $227.19, well above the MA-20 at $211.29, MA-50 at $198.15, and MA-200 at $175.55, which confirms strong bullish momentum across short, medium, and long-term timeframes. The Ichimoku Kijun on D1 is at $209.41, now serving as immediate support for the price; near-term support sits at $211.29 (MA-20), with key support next at $198.15 (MA-50), while the nearest resistance clusters are found at $229.88 (52-week high) and $235.25 (next projected weekly resistance).
Momentum indicators on D1 show robust buyer strength, with both MACD and ADX generating buy signals. RSI is elevated at 68.71, suggesting near overbought conditions, and CCI and BBP (14.73) register in overbought territory—indicating strong buyer dominance. The Stoch RSI moderates this, flagging a sell signal, while the Awesome Oscillator remains supportive of the upward bias. Morgan Stanley has risen $4.02 (1.80%) over the past week, climbing from a previous weekly close of $223.17. The price is situated in the upper part of the weekly range, with weekly volatility standing at 5.16%. The stock is consolidating near weekly highs after a robust bounce, although overbought signals warrant caution. In today’s session, MS is up another 1.80%, highlighting persistent intraday bullish momentum.
Looking ahead, the expected range for the coming week is $232.20 to $235.25, which remains close to the current price and just below the 52-week high of $229.88. Based on W1 signals—RSI, ADX, MACD, and MA-50—all indicating "Buy," the probability of further upside is very high (more than 80%), while the probability of a decline is very low (less than 20%). The baseline scenario is for MS to consolidate in a tight band near record highs, with support anchored by MA-20 and the Ichimoku Kijun. A bullish breakout above $235.25 could see rapid momentum toward new highs, while a bearish move below $211.29 would expose the stock to profit-taking and a deeper retracement. This week’s projected range is near the upper end of the yearly band, reflecting strong resilience and consistent upward trend.
Previously it was reported that Morgan Stanley was experiencing strong bullish momentum and a favorable technical outlook. As current conditions continue to reflect a constructive setup, investors should focus on monitoring the prevailing scenario for signs of sustained upward movement or emerging volatility.