Dear clients,Morgan Stanley is the largest US bank holding company, one of the financial conglomerates.Fundamental analysis:Yesterday one of the leading US banks published a positive release for the 3rd quarter. Return of the bank grew by 14.7% in annual terms to the level of $8.9 billion. At the same time, the return on investment banking activities grew by 16.6% against the third quarter of 2015.Executive Director of Morgan Stanley, James Gorman, said that despite difficulties in the world economy, the bank was able to significantly increase its share in M&A transactions. Its net income grew significantly as well: by 56.8% in annual terms to the level of $1.59 billion. The bank’s return on equity surged from 5.6% in the 3rd quarter of 2015 to 8.7% in the same period of 2016. In comparison to its rivals, Morgan Stanley’s P/BV is being traded below the average industry level, which implies growth of quotations to at least the level of 33.43.Technical analysis:On the weekly chart ADX shows a strong uptrend. Yesterday the bank’s shares confidently closed the day above year’s High (32.77), which will now be a strong support level. The nearest strong resistance is based around the upper Bollinger band (33.75).Our trading recommendations:Buy #MorganStanThe first goal: 33.43The second goal: 33.75Good luck in trading!
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