NEW YORK (TheStreet) -- Morgan Stanley (MS) shares are down 0.75% to $37.17 in afternoon trading on Wednesday and the financial services provider is the subject of today's 'Chart of the Day' analysis.
Trifecta Stocks' Bryan Ashenberg and Bob Lang believe that as the banking sector moves higher in unison as economic conditions strengthen, the trends point to either "higher inflation or perhaps stronger growth ahead, or a combination."
This is a key profit driver to the bottom line that has been missing since the Fed instituted their zero interest rate policy (ZIRP) some years ago.
Some of the recent earnings released by banks showed some encouraging signs, and long term rates, the ten and 30- year yields, have been creeping higher...
The charts of course tell the story of money flows, and regardless of the fundamental arguments, if the big money is coming into these names, then there is certainly something of substance happening.
The recent run higher post earnings in mid-April has been impressive, with solid Relative Strength and improving technical patterns. The gap just above $38.5 (arrow) begs to be filled, while the late 2014 high is a good first target.
- Bryan Ashenberg and Bob Lang, "Chart of the Week: MS," originally published 5/6/15 on TrifectaStocks.com
Separately, TheStreet Ratings team rates MORGAN STANLEY as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: