Five-wave sequences is what every Elliott Wave analyst wants to see, when looking at the charts. According to the theory, after every five waves there should be a three-wave correction in the opposite direction, before the trend resumes. It seems that the 15-minute chart of Morgan Stanley offers all we need. The decline from 33.60 to 31.10 has an impulsive structure, where wave 4 is a triangle and wave 5 – ending diagonal.
The corresponding retracement is expected to end between 32.50 and 32.70. After that, Morgan Stanley stock prices could head to the south for wave (3)/(C). As long as 33.60 stays untouched, prices below 31.10 remain on the table.
