A minor new high potentially ends a larger C wave of a zigzag correction, if you hold this stock you may want to consider taking profits or at least lifting stops towards 124.80 to protect any gains you may have.

The suspected ABC rally from the 2016 lows is correcting the prior impulsive decline, generally speaking a 50% retracement is a good target, although if we can clearly count an ABC pattern that has enough gyrations to suggest its completed, then we generally want to be looking for evidence of a turn. A minor new high would look best, so watch for a spike above 141.00-145.00 that could well find sellers.

A strong move back under 124.00 would likely suggest the advance is completed.

Before

After

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Back in Feb 2017 I was looking for a little more upside to end wave 3 and then a pullback for wave 4, followed by new highs for wave 5. So far that has played out well, although I was looking for a slightly deeper move for wave 4, it appears wave 4 traced out as a triangle, the last few gyrations could also have completed an ending diagonal for wave 5. That is actually a bearish pattern (bearish rising wedge).

The decline from 48.91 looks impulsive, so against those highs I am now favoring further weakness.

Before

https://www.wavepatterntraders.com/elliott-wave-analysis-of-morgan-stanley-ms/

After

If an impulse wave from the Feb 2016 lows has actually completed at 48.91, it could be very important as the advance from the Feb 2016 lows could also have ended a much larger impulse wave from the 2008 lows and setup for a large decline. If a bounce fails to move back above  48.00 – 48.20 and then declines hard below 46.00, you may want to think about cashing out.

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The move from the 2016 lows can now be counted as the end to an impulse wave (5 wave advance) although to be fair, there is a way to label the move as the end to wave 3 (idea in blue). Having said that, both ideas are supporting a setup for a potential move lower. Even if the current labeling is wrong, the alt idea in blue favors a pullback towards 1800.00 before further upside, so I dont think now is the time to be going “all in” on the buy side.

If anything wait for a move lower to around 1800.00 and see if any downside is in 3 or 7 waves, that would support the alt labeling. If you own this stock, you may want to consider taking profits and locking in some of the gains.

Alt idea (end to wave 3)

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The move from the lows at 182.92 (Apr 2017) could have ended a 5 wave advance to end an impulse wave for wave 5 of [5]. If the recent highs hold and we see further weakness under 210.00, if you are a holder of this stock, you may want to take note of that and take any profits you have. Looking at the monthly chart, if the move has ended (or close to ending) wave 5 of a larger advance that started from the Feb 2016 lows, then things are about to be shaken up for the bulls and a strong decline lower will be favored.

Take the $$$ whilst you have the chance, they dont always ring bell at the top, better late than never. I cant rule out a little higher, but if you have substantial gains, why risk it? At least use a close stop to lock in profits you may have.

Before

After

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The recent melt up on some tech stocks is impressive to say the least, one such stock I have been tracking is AMAT, if you own this stock this I would considering taking a sizable chunk of any profits your have off the table, if new highs are seen around 48.00 – 50.00.

Looking at the decline from the advance from the Sept 2016 lows, I can make a strong case that new highs would be the end to a 5th wave of an impulse wave. If new price highs see the RSI divergence holds, it will also favor that the trend from the Sept 2016 lows could well be coming to an end and support a substantial pullback. be very wary of price makes new high and its not supported by the RSI.

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