Will BERKSHIRE HATHAWAY INC-CL B breakout?

BERKSHIRE HATHAWAY INC-CL B (NYSE:BRK.B) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:BRK.B.

Technical analysis of NYSE:BRK.B

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall BRK.B gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, BRK.B is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, BRK.B did better than 83% of all other stocks.
• BRK.B is part of the Financial Services industry. There are 122 other stocks in this industry. BRK.B outperforms 76% of them.
• BRK.B is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so BRK.B is leading the market.
• In the last month BRK.B has a been trading in a tight range between 317.41 and 331.84.

Why is NYSE:BRK.B a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:BRK.B this score is currently 9:

Besides having an excellent technical rating, BRK.B also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 329.77. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 328.03, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:BRK.B

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.