Bulls taking Control of Morgan Stanley?

Published on Tuesday, 21 August 2012 04:54 Written by TradersHuddle Wire

New York, August 21st (TradersHuddle.com) - Shares of Morgan Stanley (NYSE:MS) ended the trading session higher by $0.21 or 1.44% from its previous close. Morgan Stanley's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.

Morgan Stanley (NYSE:MS) is a bank holding company that operates a global securities business which serves individual and institutional investors and investment banking clients. Morgan Stanley also operates a global asset management business.

Morgan Stanley's recent stock range was formed by a trough where calculated support was defined at $12.98 and by a peak that established the resistance level at $14.79. This range could be used by traders managing their positions.

Traders wanting to establish a position in Morgan Stanley or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: