Chart of the Day: Holding Remains Buy‑the‑Dip Candidate Even After 92% Gain
The big investment bank has had a huge year and is looking for more in 2026.
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Morgan Stanley (MS) was a top-performing bank this year and the chart shows a stock that is in tip-top shape. With higher highs and higher lows in the top pane, MS has moved up strongly since the bottom was settled in early April. That move from the lows is a stunning 92% gain. Sure, there were times of an overbought condition throughout the rally, but each shallow dip was a buying opportunity.
We cannot let an overbought condition dictate what our next move might be, however. To be certain, it is very difficult to add positions when overbought, but we are keen to pullbacks and finding the right areas to add shares. If we follow the trendline drawn we can see several times MS gave us a chance to buy the dip.
The indicators are mixed, with the moving average convergence divergence (MACD) struggling to sport a buy signal. Money flow has crashed below zero, but the momentum (stochastics) is still strong, which tells us the dip buyers are still active.
We like Morgan Stanley in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long MS.
