The security's latest peak comes amid historically low implied volatility (IV)
The shares of financial services concern Morgan Stanley (NYSE:MS) are up 0.6% at $81.59 at last check. The security has been cooling off from its March 4, all-time high of $83.48 over the past few days, though it still sports an impressive 118.6% year-over-year lead. Better yet, a historically bullish signal now flashing on the charts has MS poised for even more records in the coming weeks.
Specifically, Morgan Stanley stock's recent peak comes amid historically low implied volatility (IV), which has been a bullish combination for the equity in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been two other times in the past five years when the security was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower. This is now the case with the equity's SVI of 34%, which stands at the sixth percentile of its 12-month range.
White's data shows that a month after these signals, Morgan Staley stock was higher, averaging a 6.5% return for that time period. From its current perch, a similar move would put the security just over the $86 mark, at a brand new all-time high.
What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 82 out of 100, suggesting the security has exceeded volatility expectations during the past year.
