MS in a long term uptrend channel.
in the beginning of 2014 price reached top of the channel and corrected 15%
after price tried to extend gains but needed to consolidate first, creating an ascending triangle.
price broke 33.5$ resistence on nice relative (august) vol - in grey circle.
today i belive was a check of the 33.5$ level and day ended with hammerish...
Potential CRAB. The problem is price is at the top of the daily and weekly bands. Price can ride along the daily bands when the weekly bands are open, but it has been a while since price has rode the weekly that way. Could take a while to fulfill.
This is not a trade ideea, I just wanted to label what happened last 8 months, so when I will see the next signal i can compare it with the recent history.
The chart is kind of full, so I recommend you watch the numbers in the elipses and look for the explanation, not the other way around.
Now, about the chart, I can't make a 100% prediction on the resulting...
I am planning to follow a short-term long strategy (5-7 days max) in MS as stated on the chart. I got long tier 2 size as planned on Friday, I will add tier 3 if price breaks out prior highs.
XLF showed relative strength and might lead other sectors next week if the reversal in SPY on Friday sustains. MS has been one of the best acting banks.
Total size and risk...
7/2 MS Short swing trade set up. Closed below 50 SMA today. Short at the break of support in the 23.91-24.00 area, using the descending trendline to set a stop.
Could also short within the area of the trend lines with the same stop. That may be a little tricky since the 50 SMA could act as support if reclaimed.
1st target is top of the gap at 22.67. Next target...
