Stock of the Day: Morgan Stanley
17 October 2025
In today’s stock of the day, let’s take a closer look at Morgan Stanley (MS), which has been enjoying a healthy and well-structured uptrend for quite some time. The stock has been consistently making higher highs and higher lows, supported by a dynamic red uptrend line that has defined the bullish structure since midyear. From a technical perspective, everything looked well-established — the trend was steady, and every correction was orderly. Most recently, the stock created a blue flag formation, a classic trend continuation pattern, which typically signals a short pause before the next leg higher.
Indeed, after breaking out of this blue flag, the price initially delivered a trend continuation, confirming the bullish sentiment. However, things took a turn when the upswing hit resistance at the highs of the flag. The price briefly broke above this black resistance line, but the move failed to hold — forming a false breakout, clearly visible on the chart and marked with an orange rectangle. While this does not immediately cancel the uptrend, it does introduce early warning signs that the momentum might be weakening.
From a trading perspective, the key level to watch is still the red uptrend line. As long as the price remains above it, the buy signal remains intact, and the overall sentiment stays bullish. However, a daily close below this red uptrend line would confirm that buyers are losing control and could trigger a proper sell signal, opening the way for a deeper correction. For now, the outlook is cautiously optimistic — the trend is alive, but the recent false breakout is a reminder that even the strongest rallies can begin to show fatigue.