7 Hot Stocks to Trade (or Not)
I also featured Walgreen last month in "7 Dividend Stocks That Want to Pay You More Cash." Morgan Stanley
Nearest Resistance: $14.50
Nearest Support: $13.25
Catalyst: Earnings Miss
On the other side of the spectrum, Morgan Stanley(MS) is down more than 4% today after the firm reported a 50% drop in earnings for the second quarter. The news came as a surprise to Wall Street, particularly after other high-profile financials have managed to eke out better-than-expected earnings this week.
Technically, the move lower brings MS closer to triggering a less than attractive pattern -- a head and shoulders that has a neckline at $13.25. If MS can't catch a bid at that support level, then further downside has the highest probability for this stock in the near-term. If you decide to bet against Morgan Stanley on a breakdown below $13.25, I'd recommend putting in a protective stop just above the right shoulder at $14.50.