A Promising Reversal

September 12th

Good afternoon ladies and gentlemen. Tonight we are going to look at an exciting, newly confirmed reversal signal on Morgan Stanley. Let’s dive right in.

MS Reversal Buy Signal

A newly confirmed signal has MS looking like it could pull off a bullish reversal.

OmniTrader 2017 Reversal Strategy

Morgan Stanley had a solid day today, picking up a 1.31% gain during the trading session. MS got a boost off of news that it had better than expected growth prospects and its earnings estimates were also positively adjusted. But besides those pieces of information, there are quite a bit of technical features that make MS an appealing reversal candidate as well.

First, it pivoted off of support back close to $44, forming a new higher low. Second, it has moved through every major moving average except for the 50 SMA. Typically, when one is prospecting for a reversal, you want to find an instrument that is trading between several moving averages, giving the trade room to move.  It is also not oversold yet on the RSI, which tells us there is room to go in the trade as well. Its Relative Momentum is also about to become positive, which gives us even more confirmation. If all things go right for this reversal setup on MS, we could see it back in the high $40’s shortly.

This signal was fired off by our base OmniTrader Reversal Strategy. We have been focusing on these signals as of late, because time and time again, they have proven to be amazing signals. This one looks to be no different. If you don’t have OT2017 and would like to know more, you can do so by click here!

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About the Author

Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.

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