Morgan Stanley shares weekly forecast: Support at $185.22 comes into focus amid persistent selling

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Morgan Stanley slips 1.65% this week

Highlights

Shares of Morgan Stanley fell 1.65% to $187.18 over seven days, trading well below key moving averages.
Technical indicators confirm ongoing selling pressure with a firmly negative trend and price action entering oversold conditions.
Stock is projected to range between $183.63 and $190.72, with immediate support at $185.22 and resistance at $193.14.

Guarded sentiment grows as third-quarter earnings event dominates outlook

Morgan Stanley will announce its third-quarter 2026 earnings results on October 14, with revenue expected between $19.97 billion and $20.52 billion and EPS ranging from $2.95 to $3.10, according to TradingView and Scanx Trade. Trader sentiment has become more guarded in the lead-up to these results, as reported by Simply Wall St. This earnings event remains a primary focus for MS heading into the week.

Downside momentum accelerates as RSI slips into oversold zone

On the daily chart, the setup remains firmly negative, with price action showing a sustained move lower with a firm trend and 4.28% volatility for the week. The RSI has entered oversold territory at 29.48, sharpening the argument for heavy downside momentum, while MACD and ADX both confirm active selling pressure. Immediate support sits at $185.22, with resistance forming at $193.14 and the Ichimoku Kijun capping rallies near $200.46. These downside signals point to further risk of weakness, though the oversold RSI may limit the pace of decline.

Further downside favored as resistance caps rebound prospects for next week

In the week ahead, Morgan Stanley shares are expected to trade between $183.63 and $190.72. There is a very high probability (more than 80%) of a further decrease and a very low probability (less than 20%) of a rebound. The base case sees the stock holding within this range, pressured by resistance at $193.14. A sustained push above resistance would open the door for corrective gains, while a move below $185.22 would confirm a more severe bearish extension toward the lower end of the projected range.

Anton Kharitonov, expert at Traders Union, notes that shares of Morgan Stanley remain under downside pressure, settling near $187 after falling around 1.7% this week. He sees the market in a defensive stance as traders prepare for the key third-quarter 2026 earnings release scheduled for October 14. Technical signals on the daily chart confirm a sustained bearish trend, with active selling pressure shown by the MACD and ADX, while an oversold RSI at 29.48 could slow the pace of further declines. Resistance builds at $193.14, while immediate support is at $185.22—failure to hold this level would signal deeper weakness toward $183.63. Kharitonov believes the base case for the week is a rangebound performance under resistance, with only a small chance of a meaningful rebound. "Until Morgan Stanley’s earnings surprise to the upside and shares reclaim $193.14, I remain cautious and do not expect a recovery this week."

Earlier, analysts noted that Morgan Stanley shares were under persistent downside pressure, with technical signals indicating vulnerability despite recent strategic initiatives. This article strengthens that outlook with fresh evidence of intensifying selling pressure ahead of the upcoming earnings release, making the $185.22 support level critical to monitor for signs of further downside risk.

Source of Data: MS Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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