Morgan Stanley shares fall for a second session in a row on Monday, holding ordered to pay $13 million in fines and restitution

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