BERKSHIRE HATHAWAY INC-CL B is showing promising signs of setting up for a 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 8 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.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, BRK.B did better than 79% of all other stocks. On top of that, BRK.B also shows a nice and consistent pattern of rising prices.
• BRK.B is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so BRK.B is lagging the market slightly.
• BRK.B is an average performer in the Financial Services industry, it outperforms 68% of 101 stocks in the same industry.
• In the last month BRK.B has a been trading in a tight range between 401.58 and 417.33.

Check the latest full technical report of BRK.B for a complete technical analysis.

How does the Setup look for NYSE:BRK.B

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:BRK.B currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

BRK.B has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 417.22. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 413.68, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:BRK.B be traded?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade NYSE:BRK.B and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.