Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Morgan Stanley (MS) was reported to have been ordered by the Financial Industry Regulatory Authority (FINRA) to pay $13 million in fines and restitution to customers in relation with inadequate supervision over some short-term trades. The fines imposed are estimated at $3.25 million, while an additional $9.78 million are to be paid to customers as restitution.

Morgan Stanley shares closed lower for a second consecutive trading session on Monday. It has also been the steepest daily loss since September 7th. The stock went down 1.00% ($0.48) to $47.74, after touching an intraday low at $47.54, or a price level not seen since September 21st ($47.46). In the week ended on September 24th the shares of the financial holding company added 3.48% to their market value compared to a week ago, which marked a second consecutive period of gains. The stock has pared its advance to 4.92% so far during the current month, following a 2.99% slump in August. The latter has been the first drop out of three months. For the entire past year, Morgan Stanley shares gained 32.82%. The stock has risen 12.99% so far in 2017.

According to FINRA, within the period January 2012-June 2015 thousands of customers were advised by Morgan Stanley brokers to sell unit investment trusts before maturity and to roll over into a new product.

In some cases brokers sold the unit investment trusts of clients less than 100 days before maturity, while rolling their funds over into new products.

When ones position in a particular trust is sold early and rolled over into a new trust, he/she may be charged higher sales fees over time, which raises the question whether this is a suitable decision for the investor.

Meanwhile, Morgan Stanley allegedly did not provide adequate training to its supervisors, so that they could spot inappropriate short-term trades. The regulatory authority also found that the investment bank did not have an adequate system in order to detect and cancel the orders before they are executed.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Morgan Stanley’s stock price, have a median target of $50.00, with a high estimate of $61.00 and a low estimate of $34.00. The median estimate is a 4.73% surge compared to the closing price of $47.74 on September 25th.

The same media also reported that 14 out of 28 surveyed investment analysts had rated Morgan Stanley’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Morgan Stanley stock are presented as follows:

R1 – $47.81
R2 – $47.88
R3 (Range Resistance – Sell) – $47.95
R4 (Long Breakout) – $48.16
R5 (Breakout Target 1) – $48.41
R6 (Breakout Target 2) – $48.51

S1 – $47.67
S2 – $47.60
S3 (Range Support – Buy) – $47.53
S4 (Short Breakout) – $47.32
S5 (Breakout Target 1) – $47.07
S6 (Breakout Target 2) – $46.97

By using the traditional method of calculation, the weekly levels of importance for Morgan Stanley (MS) are presented as follows:

Central Pivot Point – $47.82
R1 – $48.89
R2 – $49.56
R3 – $50.63
R4 – $51.70

S1 – $47.15
S2 – $46.08
S3 – $45.41
S4 – $44.74

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Stock Indices: Dow Jones climbs to new 2-month highs led by Exxon Mobil, Procter&GambleStock Indices: Dow Jones climbs to new 2-month highs led by Exxon Mobil, Procter&Gamble On Wednesday Dow Jones Industrial Average traded within the range of 16,767.99-16,899.73. The benchmark closed at 16,898.56, edging up 0.20% (33.48 points) on a daily basis. It has been the 10th gain in the past 22 trading days and also a […]
  • GBP/USD reacted slightly to UK consumer inflation reportGBP/USD reacted slightly to UK consumer inflation report British pound showed little reaction against the US dollar on Tuesday, after a report said that consumer inflation in the United Kingdom remained flat in July in consonance with preliminary estimates.GBP/USD touched a session high at […]
  • GBP/USD on 1.5-month highs after BoE report, Carney press conferenceGBP/USD on 1.5-month highs after BoE report, Carney press conference The pound climbed to almost 1.5-month highs against the US dollar on Wednesday after Bank of England maintained interest rates at current record lows until unemployment rate in the United Kingdom decreases to 7%.GBP/USD reached its highest […]
  • Facebook Inc. share price up, finalizes the $21.8-billion acquisition of WhatsAppFacebook Inc. share price up, finalizes the $21.8-billion acquisition of WhatsApp Facebook Inc. managed to finally close its acquisition deal of WhatsApp Messenger, which turned out to be more expensive than it was originally planned. The deal, which received approval by European regulatory authorities last week, is […]
  • EUR/USD declines for a third day on Fed taper outlookEUR/USD declines for a third day on Fed taper outlook The euro edged lower against the US dollar on Wednesday after yesterday’s report on retail sales in the United States supported expectations that Fed may continue to pare back its monthly monetary stimulus throughout 2014.EUR/USD touched a […]
  • Soft futures mixedSoft futures mixed Soft futures were mixed on Thursday with sugar, arabica and robusta coffee marking daily gains, while cotton and cocoa traded lower.On the ICE Futures U.S. exchange, arabica coffee for September delivery traded 1.23% higher on the day, […]