NEW YORK – Morgan Stanley (MS) stock presented a baffling picture for investors on Tuesday, staging a powerful rally during regular trading hours only to see it completely wiped out by a dramatic sell-off in post-market activity. This stark reversal has set a highly bearish tone ahead of the next market open.
During the official session on Tuesday, June 25th, the investment bank’s stock appeared robust, closing at
1.82 (1.34%). However, the pre-market data tells a completely different story. The stock is indicated at
1.82 (-1.32%), precisely erasing the day’s entire advance.
A Tale of Two Sessions: Rally and Reversal
The intraday chart shows a tale of two distinct trading periods. During the regular session from 9:30 AM to 4:00 PM EST, Morgan Stanley stock was a picture of strength. After a brief dip to its low of
137.89** just before the close. Closing near this peak is typically a very bullish sign.
However, the chart reveals a cliff-like drop immediately after 4:00 PM. This sharp decline in the after-hours or pre-market session indicates that significant news or a large sell order hit the market after the closing bell, instantly reversing sentiment.
Key Data Points for Your Trading Plan
The conflicting sessions make these metrics critically important for analysis:
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Closing Price (Official): $137.72
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Day’s Change (Official): +$1.82 (+1.34%)
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Pre-Market Price: $135.90 (-1.32%)
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Day’s Range: $135.41 (Low) to $137.89 (High)
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Previous Close: $135.90
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P/E Ratio: 16.16
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Dividend Yield: 2.69%
Crucially, the pre-market price of $135.90 is identical to the previous day’s closing price, meaning the stock is poised to open as if the entire Tuesday rally never happened.
Market Outlook: Will Morgan Stanley Stock Go Up or Down?
Based on the available information, the immediate outlook for Morgan Stanley stock is bearish.
The Overwhelming Bearish Signal:
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After-Hours Collapse: A sudden, sharp drop in the pre-market that erases the entire prior day’s gain is a powerful negative signal. It suggests a fundamental change in perception, likely triggered by unexpected news. The market is signaling its intent to open with a significant gap down.
Points to Watch:
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Support Test: The pre-market price of $135.90 (the previous close) and the day’s low of $135.41 will now act as critical support levels. If the stock opens and breaks below these levels, further downside is likely.
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Bullish Strength Annihilated: The strong buying pressure seen throughout Tuesday’s session has been completely nullified. The day’s high of $137.89 now stands as a major new resistance level.
Is It the Right Time to Invest Today?
This is a high-risk situation, and caution is strongly advised.
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For Potential Buyers: Buying at the open would be akin to “catching a falling knife.” It is not advisable. A much safer approach would be to wait and see if the stock can find a solid base of support and stop falling before considering an entry. Watching how it behaves around the $135.41 – $135.90 zone will be key.
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For Existing Holders: The situation is concerning. The after-hours drop has erased unrealized gains from the day. Investors should monitor the opening price action closely to decide whether to hold or manage their position.
In summary, the strong regular session for Morgan Stanley stock has been rendered irrelevant by the dramatic post-market sell-off. The immediate sentiment is negative, and traders should prepare for a weak open and a test of key support levels.
Disclaimer: This article is for informational purposes only and is based on the analysis of the provided image. It does not constitute financial advice. Stock market trading involves risk, and investors should conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions.
