BRK-A closes above its opening price after recovering from early selling pressure
Berkshire Hathaway Inc. (BRK-A) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BRK-A finished the month 9.85% higher at 293631.00 after gaining $2269.00 (0.78%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $1600.00 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 291927.00, the stock confirmed its breakout through the previous session high after trading up to $1871.00 above it intraday.
Daily Candlestick Chart (BRK-A as at Jul 31, 2020):
Friday's trading range has been $3648.00 (1.25%), that's slightly below the last trading month's daily average range of $4113.40. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BRK-A.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, BRK-A actually lost -1.06% on the following trading day.
Prices are trading close to the key technical resistance level at 295765.00 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 294870.00 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 288610.00 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Berkshire Hathaway. Out of 694 times, BRK-A closed lower 52.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 49.71% with an average market move of -0.11%.