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Morgan Stanley shares just did something interesting, and here’s why one trader is buying it

Morgan Stanley's earnings beat Wednesday sent the stock rallying more than 2 percent, but the big bank's run is far from done, according to Rich Ross.

The Evercore ISI technician identified three technical reasons why "[Morgan Stanley] has further upside." Looking at a chart of Morgan Stanley, Ross points out that while the stock has really moved like an "escalator," climbing until March but then losing all of its 2017 gains by the end of the month, it has managed to keep above its 150-day moving average.

This is the first technical reason why Ross believes Morgan Stanley is a buy. The 150-day moving average serves as a key technical indicator for the stock's movement, Ross said on CNBC's "Trading Nation." "It really defines the trend, providing support on the way up and resistance on the way down."

He added: It's making "a critical stand here."

But the 150-day moving average line is also hitting another key level for the stock, which is trading above $42. That line currently sits at around $40, a level that is actually close to the bank's 2016 highs. In Ross' eyes, this further cements $40 as a "support" level.

The fact that Morgan Stanley has managed to stay above this $40 resistance even as it tumbled from 2017 highs leads Ross to round out his third reason for buying the bank. Ross thinks that since the stock is staying above $40, it will likely bounce from there.

"There is still upside to Morgan Stanley; I would be a buyer," he concluded.

Earlier Wednesday, the financial giant reported first-quarter results that beat earnings and revenue expectations.

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Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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