NEW YORK – Shares of investment banking giant Morgan Stanley (MS) closed down significantly on Friday, capping a volatile week for the financial sector. The stock finished the regular session at
2.43 or 1.84%, falling well below the previous day’s close of $131.92.
The day’s trading painted a picture of early strength followed by a sustained afternoon sell-off. After opening at $130.19, the stock climbed to a session high of $131.07 around noon. However, the momentum reversed sharply in the second half of the day, with sellers pushing the price down to a low of $128.81 before a minor bounce into the closing bell.
Despite the bearish close, a glimmer of optimism for the upcoming week emerged in post-market trading. In the after-hours session, Morgan Stanley shares recovered some ground, rising
129.80.
Analysis & Outlook for Monday:
The substantial drop during regular trading hours points to broad market weakness or profit-taking pressure. However, the after-hours recovery is a critical indicator for Monday’s open. This buying activity suggests that investors saw the 1.84% decline as a buying opportunity, stepping in once the primary selling wave subsided.
This reversal in sentiment, albeit modest, sets a cautiously optimistic tone for the start of the new trading week. Key levels to watch on Monday will be:
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Support: The day’s low of $128.81 now stands as a crucial support level. A failure to hold above this point could signal further downside.
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Resistance: The after-hours price of $129.80 will be the first test for bulls. If the stock can open above this level and build momentum, it could be poised to reclaim more of Friday’s losses.
Conclusion: Although Friday’s headline figure was negative, the after-hours performance suggests the downward pressure may be letting up. The market’s reaction points toward a potential upward move on Monday, as dip-buyers appear ready to challenge the bearish sentiment that dominated Friday’s session.
