BERKSHIRE HATHAWAY INC-CL B (NYSE:BRK.B) - A Strong Technical Setup Worth Watching

BERKSHIRE HATHAWAY INC-CL B (NYSE:BRK.B) has been identified as a potential breakout candidate by our technical screening process. The stock shows a combination of solid technical health and a well-defined consolidation pattern, suggesting a possible upward move. Below, we break down the key factors that make BRK.B stand out.

Technical Strength

• Technical Rating of 7: BRK.B scores well on its overall technical health, indicating an uptrend. Over the past year, the stock has outperformed 87% of the market, demonstrating consistent price appreciation.
• Strong Relative Strength: The stock ranks in the top 12% of its Financial Services industry peers, reflecting its leadership within the sector.
• Long-Term Uptrend Intact: Despite recent short-term weakness, the broader trend remains positive, supported by key moving averages (50-day, 100-day, and 200-day SMAs) trending upward.

Setup Quality

• Setup Rating of 8: The stock is consolidating in a tight range, reducing volatility and forming a clear support-resistance structure.
• Support Zones Identified: Multiple support levels exist between $506.78 and $512.09, providing a cushion in case of a pullback.
• Resistance Near $520: A breakout above $518.90 could signal the next leg higher, with further resistance around $537.72.
• Tight Risk-Reward: The suggested entry at $520.35 with a stop below $506.77 offers a controlled risk of 2.61%, making it an attractive setup for traders.

For a deeper look at the technicals, review the full technical report for BRK.B.

Our Technical Breakout Setups screener lists more stocks with strong technical setups and is updated daily.

Disclaimer

This is not investment advice. The analysis is based on technical observations at the time of writing, and market conditions can change rapidly. Always conduct your own research before making trading decisions.