Good technical signals and a possible breakout for BERKSHIRE HATHAWAY INC-CL B.

A possible breakout setup was detected on BERKSHIRE HATHAWAY INC-CL B (NYSE:BRK.B) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:BRK.B.

Zooming in on the technicals.

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

Overall BRK.B gets a technical rating of 7 out of 10. Although BRK.B is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• BRK.B is one of the better performing stocks in the Financial Services industry, it outperforms 74% of 123 stocks in the same industry.
• BRK.B is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so BRK.B is performing more or less in line with the market.
• When comparing the yearly performance of all stocks, we notice that BRK.B is one of the better performing stocks in the market, outperforming 78% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month BRK.B has a been trading in a tight range between 317.41 and 333.94.

How does the Setup look for NYSE:BRK.B

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:BRK.B scores a 8 out of 10:

BRK.B has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 320.53, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:BRK.B?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.

Our Breakout analyzer lists more breakout setups and is updated daily.